U.S. builder confidence for new single-family homes in January decreased one point from December 2021 to 83, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions remained at 90 and the measurement of sales expectations in the next six months dropped two points to 83 in January. The component measuring prospective buyer traffic fell two points from December to 69.
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