Theresa Chen

The NAHB housing index fell to 13 in August from 14 in July, the third consecutive monthly decline since the recent peak in May. This was below our and consensus estimates of 15. The decline in the headline index today was broad-based as single family present sales dipped to 14 from 15 previously and single family future sales decreased to 18 from 21.

Furthermore, the index of prospective buyers traffic stayed stagnant at 10, unchanged from July. Regionally, prospective buyers traffic in new homes fell most sharply in the Northeast, to 18 from 24 previously. Buyers traffic in the South and West inched lower 1pt to 13 and 8, respectively, while the index for the Midwest remained unchanged at 15.

The headline index has edged steadily downwards in the past three months, partly from the effects of the first-time homebuyer tax credit ending, but also likely reflecting weaker housing conditions in general as the large pipeline of foreclosures continues to enter the market.

source: BarCap