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According to analysts from Wells Fargo, solid economic growth supports housing demand but rising input costs remain a top concern. The NAHB/Wells Fargo Housing Market Index remained unchanged in July at 68.  

Key Quotes:  

“Builder confidence remained solid in July, with the HMI unchanged at 68. Single-family demand remains at a high level, with the present sales index also remaining unchanged at 74. Today’s reading is consistent with likely solid gains in singlefamily starts later this summer.”

“Builder outlook was mixed, as the future sales index dropped 2 points, while the prospective buyer traffic index rose 2 points.”

“Although demand remains solid, builders continue to cite rising material costs amid recently-imposed tariffs as a key challenge in meeting rising demand. The June PPI report showed construction materials and components running at a 10.4 percent 3-month annualized rate, the second-fastest pace since September 2008.”