U.S. Homebuilder Confidence Unexpectedly Drops In July

(RTTNews) - Homebuilder confidence in the U.S. unexpectedly saw a modest deterioration in the month of July, according to a report released by the National Association of Home Builders on Monday.

The report said the NAHB/Wells Fargo Housing Market Index edged down by a point to 59 in July after climbing by two points to 60 in June. Economists had expected the index to inch up to 61.

"For the past six months, builder confidence has remained in a relatively narrow positive range that is consistent with the ongoing gradual housing recovery that is underway," said NAHB Chairman Ed Brady.

He added, "However, we are still hearing reports from our members of scattered softness in some markets, due largely to regulatory constraints and shortages of lots and labor."

The modest drop by the housing market index reflected decreases by all three components that make up the index.

The components measuring current sales expectations and buyer traffic each fell one point to 63 and 45, respectively, while the index measuring sales expectations in the next six months slid to 66 from 69.

Tuesday morning, the Commerce Department is scheduled to release a separate report on new residential construction in the month of June.

Economists expect housing starts to climb to an annual rate of 1.170 million in June from a rate of 1.164 million in May.