LM Otero, File, Associated Press
FILE - In this Tuesday, Feb. 2, 2016, file photo, a "Sold" sign sits in front of the foundation of a house under construction as workers discuss plans in Plano, Texas. On Monday, July 18, 2016, the National Association of Home Builders/Wells Fargo releases its July index of builder sentiment.

U.S. homebuilders are feeling slightly less optimistic about their sales prospects this month, though their outlook for the new-home market remains positive overall.

The National Association of Home Builders/Wells Fargo builder sentiment index released Monday fell one point to 59.

Readings above 50 indicate more builders view sales conditions as good, rather than poor. The index had mostly held at 58 this year before rising to 60 last month.

Builders' view of current sales and traffic by prospective buyers slipped one point this month. Their outlook for sales over the next six months slid three points.

New home sales declined 6 percent in May to a seasonally adjusted annual rate of 551,000 homes. Still, sales are running ahead of last year's pace through the first five months of this year.