NAHB Housing Market Index Rebounds As Mortgage Rates Fall

Key Insights

• NAHB Housing Market Index improved from 34 in November to 37 in December. 
• Mortgage rates were down roughly 50 basis points over the past month. 
• The average price reduction in December remained at 6%. 

On December 18, the National Association of Home Builders released NAHB Housing Market Index report. The report indicated that NAHB Housing Market Index increased from 34 in November to 37 in December, compared to analyst consensus of 36.

The National Association of Home Builders commented: “With mortgage rates down roughly 50 basis ponts over the past month, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look.”

Treasury yields have moved away from recent lows, but it should be noted that the situation has significantly improved compared to October, when interest rates were near highs.

U.S. Dollar Index rebounded towards the 102.55 level after the release of NAHB Housing Market Index report. The improvements in the housing market are bullish for the American currency.

Gold  settled near the $2020 level as traders waited for additional catalysts. Rising Treasury yields may put some pressure on gold markets today.

SP500 continued its attempts to settle above the resistance at 4730 – 4750. Traders stay bullish as they believe that Fed will start cutting rates in the first half of 2024.

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