WHAT: National Association of Home Builders Housing Market Index, February

WHEN: Tuesday 1000 EST (1500 GMT)

FORECASTS Reuters IFR Previous

NAHB index 48 48 47

IFR COMMENTARY: 'The NAHB Housing Market Index will likely see a

slight uptick from 47 to 48 in February, after January saw it

fail to increase for the first time in nine months. January's

figure saw a curious dip in the Midwest balanced by a surge in

the West, both of which will likely at least partially revert to

the mean. Our suspicion is that buyer traffic will continue

slowly normalizing as consumers move past the initial impact of

the beginning-of-year tax increase and adapt to the fact that

the fiscal cliff wasn't an economic apocalypse.

Existing home sales slipped slightly in December, but

inventories declined further, which represents an ongoing boon

to homebuilders. Mortgage application activity continues to

recover after a dip at the end of 2012, which further hints that

homebuyer sentiment is on the mend. Still, a reading of 48 would

represent very slightly negative sentiment, and would be the

HMI's 81st consecutive month below 50.'

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NOTE: Monday, Feb. 18 is Presidents' Day holiday.

-- by Theodore Littleton of IFR Markets, a unit of Thomson

Reuters.

((--Reuters Economics and Markets desk, +1 212 646 6300))

Keywords: IFR PREVIEW/USA

(Washington newsroom, 202 898 8318)

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