The National Association of Home Builders (NAHB) Housing Market Index, which measures builder confidence, rose one point to 56 in July. This latest reading marks the seventh straight increase, with builder sentiment now at the highest level since June 2022 and firmly in expansion territory over the breakeven level of 50.

What’s the bottom line? Low existing home inventory continues to boost optimism among home builders, as it is keeping the demand for new homes “solid” per the NAHB. Among the components of the index, current and future sales expectations are well in expansion territory at 62 and 60, respectively. Buyer traffic moved three points higher to 40, which is a big recovery from the low of 20 seen late last year as this gauge moves closer to the 50 breakeven level.