U.S. index, which indicates the state of the housing market in the country, exceeded the forecasts of analysts and reached a maximum of six months. In July, the index of business activity in the housing market has grown to 53, which is 4 points better than the previous value and 2 points better than expected.
Reason for the raise of optimism in the housing market was the increase in the level of employment, as well as confidence in the economic stability of families in the country, which has led to the purchase of houses, which had been postponed due to economic risks.
The construction sector is one of the key for the American economy and its growth provides reason to expect U.S. GDP growth. At the same time, U.S. stock indexes are overvalued and we expect a significant correction by 10-15% in the medium term.