NAHB Housing Market Index Grows For Seventh Straight Month

Key Insights

• NAHB Housing Market Index grew from 55 in June to 56 in July. 
• Business Inventories increased by 0.2% month-over-month in May. 
• Industiral Production declined by 0.5% month-over-month in June. 

On July 18, the National Association of Home Builders released NAHB Housing Market Index report, which indicated that NAHB Housing Market Index increased from 55 in June to 56 in July. The report met analyst estimates, indicating that the housing market conditions continued to rebound from the lows that were reached in December 2022.

Business Inventories increased by 0.2% month-over-month in May, in line with the analyst consensus. Meanwhile, the Industrial Production report was disappointing as it showed that Industrial Production decreased by 0.5% month-over-month in July. Analysts expected that it would remain unchanged.

Treasury yields remained under pressure after the release of the economic reports. Traders bet that the rate hike cycle would soon come to an end.

U.S. Dollar Index continues its attempts to settle back above the psychologically important 100 level. The positive dynamics in the housing market may provide some support to the American currency, but it remains to be seen whether bulls will push the U.S. Dollar Index above the 100 level amid falling Treasury yields.

Gold tested the $1975 level as traders focused on the pullback in Treasury yields. U.S. dollar is mostly flat in today’s trading session, which is also bullish for gold markets.

SP500 tested the 4530 level as traders remained bullish after the release of the housing market data. Interestingly, the weaker-than-expected Retail Sales report did not put any pressure on SP500 today.

For a look at all of today’s economic events, check out our economic calendar.