U.S. builder confidence for new single-family homes in May was 45, falling six points from April and marking the first regression since November 2023, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component that tracks current sales slid six points to 51, and the measurement of sales expectations for the next six months dropped nine points to 51 in April. The prospective buyer traffic component was 30, a decrease of four points compared to last month.
Derived from a monthly NAHB survey, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months. Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good rather than poor. See NAHB