The National Association of Home Builders' (NAHB) Composite Housing Market Index fell to 70 in July from the upwardly revised record level one month prior. The index this year has averaged 70, up slightly versus 2004.

During the last twenty years, annual changes in the composite index had an 85% correlation with the change in single family housing starts.

The July index for current sales of single family homes fell 2.6% y/y but remained up 1.4% versus a year ago. The index of expected sales in six months retraced all of the prior month's increase but was up 4.1% y/y.

Traffic of prospective home buyers remained at June's 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.

Visit the National Association of Home Builders.