2018.07.1710:32:00UTC+00U.S. Homebuilder Confidence Holds Steady In July

Homebuilder confidence in the U.S. has held steady in the month of July, according to a report released by the National Association of Home Builders on Tuesday.

The report said the NAHB/Wells Fargo Housing Market Index remained unchanged in July after dipping to 68 in June. The unchanged reading matched economist estimates.

"Consumer demand for single-family homes is holding strong this summer, buoyed by steady job growth, income gains and low unemployment in many parts of the country," said NAHB Chairman Randy Noel.

The NAHB said the index measuring current sales conditions also remained unchanged from the previous month at 74 in July.

Meanwhile, a two-point drop by the index gauging expectations in the next six months was offset by a two-point increase by the index charting buyer traffic.

"Builders are encouraged by growing housing demand, but they continue to be burdened by rising construction material costs," said NAHB Chief Economist Robert Dietz.

He added, "Builders need to manage these cost increases as they strive to provide competitively priced homes, especially as more first-time home buyers enter the housing market."

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

Housing starts are expected to edge down to an annual rate of 1.320 million in June after jumping to a rate of 1.350 million in May.