The National Association of Home Builders' (NAHB) Composite Housing Market Index rose to 71 in June, returning to the record high level reached last December.

During the last twenty years, annual changes in the composite index had an 83% correlation with the change in new home sales. There's been an 86% correlation with the change in single family housing starts.

For the second month, all of the June index components improved. The index for current sales of single family homes was up 4.1% y/y and the index gauging expected sales in six months increased 5.3% y/y.

Traffic of prospective home buyers rose nearly to the record high level.

The NAHB index is a diffusion index based on a survey of builders. Readings above 50 signal that more builders view conditions as good than poor.

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