Investing.com -- The National Association of Homebuilders released its August 2026 Housing Market Index on Monday, showing an increase to 35 from 34 in the prior month. The reading exceeded the FactSet consensus estimate of 33.

The index measures home builder sentiment, with readings above 50 indicating more builders view business conditions as good rather than poor.

The monthly improvement was driven by the present sales component, which rose to 39 from 37. The six-month sales outlook held steady at 43, while the traffic component remained unchanged at 23.

Sales incentives stayed flat at 63% of builders offering them. The use of price cuts decreased to 35% from 37% in July, while the average price reduction remained unchanged at 6%.

Regionally, the Northeast index increased to 42 from 41. The Midwest held steady at 45, revised from a previous reading of 46. The South rose to 32 from 31, and the West climbed to 27 from 26, revised from an earlier reading of 25.