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Builder confidence may have dropped 2 points to 68 and missed the expected jump to 78 but the NAHB Housing Market Index reading for 2018 is at 70, the highest average recorded, highlighting a strong market that builders are overall confident with. The miss came mostly from rising lumber costs.

Housing Starts in May rose 5 percent, the highest pace in 11 years and more than double the 2 percent gain expected. Both, single-family and multi-family housing increased; with single-family, which is what we care about more, rose by 3.9 percent. Unfortunately, Housing Permits showed a different and more disappointing story, falling 4.6 percent.