The US National Association of Home Builders/ Wells Fargo Housing Market Index rose eight points in June to 52, crushing analyst expectations of 45.
Before the results were announced, TF Market Advisors tweeted:
#NAHB is a number we typically don't pay close attention to, but might be interesting signal if higher mtg rates had any impact— TF Market Advisors (@TFMkts) June 17, 2013
This is the first time the index has been above 50 (indicating builders are seeing better market conditions as demand for homes increases) since April 2006 . It’s also the biggest one-month gain since late 2002.
All components of the index posted gains, with the index measuring sales conditions rising eight points to 56, the index gauging expectations for future sales growing nine points to 61, and the index measuring the traffic of respective buyers rising seven points to 40.
The data adds to the bullish sentiment for the US manufacturing industry also expressed in the Empire State manufacturing survey. Indeed, the dollar saw a slight strengthening against the British pound on the news.
Following the release, Kit Juckes replied to the above tweet and TF Market Advisors responded:
@TFMkts up to 52. So much for that, then!— kit juckes (@kitjuckes) June 17, 2013
@kitjuckes yup, seems like a great number...though guess that is why we don't focus on it much, since didn't seem to move mkts much— TF Market Advisors (@TFMkts) June 17, 2013