With a reading over 50 meaning most builders see the single-family housing market as good rather than poor, the National Association of Home Builders (NAHB) housing market index rose two points to 60 in June over May, according to wsj., although economists expected a reading of 59.

Positive since mid-2014, the index hit a post-recession high of 65 in Oct. 2015, but has remained at 58 the previous months.

Continuing to move unevenly, the National Association of Realtors (NAR) reports existing home sales rose in April, but only for the 2^nd consecutive month, while the Commerce Dept. tells MHProNews sales of new single-family homes also increased in April to their fastest annual rate since 2008.

Jim O’Sullivan, chief U. S. economist at High Frequency Economics Ltd. said housing is gaining momentum; but economist Joshua Shapiro of MFR Inc. says the home builders index has diverged noticeably from the actual pace of homebuilding since 2012, with sentiment outpacing building. “There remains a big disconnect between what home builders are saying and what they are actually doing,” he added.

Typically, low mortgage rates and steady job gains increase the demand for housing, but a combination of only 38,000 new jobs added last month, and continuing shortages of skilled labor and buildable lots may hamper the new homes industry in coming months.

Of the four regions, the NAHB index indicates only the Midwest fell, losing four points to 56.The Northeast moved up three points to 39, the South gained four points to 64 and the West saw an advance of three points to 70. ##

(Photo credit: housingwire)

Article submitted by Matthew J Silver to Daily Business News-MHProNews.