U.S. NAHB homebuilder index remains stable in September

The U.S. NAHB homebuilder sentiment indicates signs of stabilizing in September. The NAHB housing market index’ reading for September implies that the sentiment in homebuilder might be firming after having dropped in 2018 from its expansionary high in late 2017. The top-line index has remained stable at 67 in the month, a level in line with further rises in homebuilding activity.

Delving into details, homebuilders’ assessments of both present and future sales rose slightly in September; however, they stay in line with the range of readings seen in the past six months or so. In the meantime, homebuilders reported falls in traffic from prospective buyers for the second straight month. The September HMI print came in slightly above the consensus expectations.

Anecdotes from the NAHB press release imply that September’s firming of sentiment reflects relief regarding the recent decline in prices of lumber, which had surged throughout 2017 and much of this year because of import tariffs and transportation bottlenecks. Homebuilders continue to be positive regarding the state of housing demand, which is being stimulated by household formation, noted Barclays in a research report.

“However, builders continued to report concerns about affordability, which, in their view, is being diminished by restraints on supply from the burdensome regulatory environment and escalating trade restrictions”, added Barclays.

At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was bearish at -97.8853. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex