Even though builder confidence in the new single-family home market fell two points to 64 in June, the National Association of Home Builders, who, along with Wells Fargo produces the monthly Housing Market Index, feels overall sentiments are still solid, as the scores have been consistently in the low- to mid-60s for the past five months.

Other conclusions by the NAHB include: demand for single-family homes remains stable; builders are concerned with rising development and construction costs, trade issues, excessive regulations, a shortage of lots, skilled labor and supply; and home prices remain somewhat high relative to incomes in spite of lower mortgage rates.

All the components of the HMI slipped in June. Current sales conditions dropped one point to 71, expectations in the next six months lost two points to 70 and buyer traffic was down one point to 48.

For 30 years, the HMI has been taking the pulse of current single-family home sales and sales expectations by homebuilders for the ensuing six months. Results for the separate components are used to calculate an overall score where any number over 50 indicates that more builders view conditions as good than poor.