U.S. Housing Market Index at Lowest Level in a Year

The United States Housing Market Index declined by 5 points to 75 in August, according to data by the National Association of Home Builders (NAHB) and Wells Fargo released on Tuesday.

Although the reading remains positive as it is above the 50-point mark, the index has reached its lowest level since July 2020.

The current sales conditions index also decreased by 5 points to 81, the gauge of the traffic of prospective buyers recorded an equal decline to reach a reading of 60.

Meanwhile, the index for sales expectations in the next six months remained unchanged at 81.

A tight supply is leading to higher housing prices in the United States, amid an increased demand with a historically low level of interest rates, but higher costs of and building materials and skilled labor are also leading to higher prices in newly built homes.