Here Comes Homebuilder Confidence...

The NAHB housing market index (HMI) for September is out at 10 a.m. ET.

Economists polled by Bloomberg are looking for the HMI, a gauge of homebuilder confidence, to decline to 58, from 59 the previous month.

Weaker new home sales and mortgage purchase applications are expected to filter through to homebuilder confidence.

A reading over 50 shows that more builders think sales conditions are good rather than poor.

Investors track this index because it is a leading indicator for housing starts. Though some like Paul Diggle at Capital Economics argue that NAHB has a "history of over-exuberance as a predictor of starts."