A timely gauge of home sales and expectations for future home building. Based on a small sample of homebuilders, the Housing Market Index is a timely indicator of future US home sales. However, as the index is not as comprehensive as formal housing reports like new home sales or MBA mortgage applications, the index acts more like a supplemental indicator for predicting housing trends.
As such, the NAHB Housing Market Index is still able to provide general insight to where the housing market is heading. Given that new home sales reflect ‘big ticket’ items that require construction and investment, the housing market is often viewed as an indicator of the direction of the economy as a whole. Growth in the housing market will spur subsequent spending, generating demand for goods and services and the employees who provide them.
The report headline is expressed in percentage change from the previous month.
As a Technical Aside: The NAHB Housing Market Index divides the Single-Family Sales data into three categories: Present, Next 6 Months and Prospective Buyers Traffic.
Relevance: Rarely affects markets
Release schedule : 1:00 PM (EST); monthly, mid-month and covers the same month
Source of report : National Association of home Builders
Web Address : www.nahb.org
Address of release : http://www.nahb.org/ (type “HMI” in search box)
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