US: NAHB housing market index to ease slightly to 66 in October - Nomura

Analysts at Nomura expect the NAHB housing market index of US to ease slightly to 66 from 67 in October.

Key Quotes

“While our forecast of 66 still indicates strong optimism, the recent incoming data have shown indication that worsening affordability may be affecting demand for new housing. The consumer sentiment on home buying conditions has been deteriorating for a while on rising prices.”

“On positives, the labor market remains strong and demographic factors still remain favorable for housing demand. In addition, the recent stabilization of softwood lumber prices may have alleviated some concern among homebuilders.”