U.S. builder confidence for new single-family homes grew two points in October to 43, marking the second consecutive monthly increase, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). NAHB reported that lower mortgage rates and inflation improved builders’ outlook. The HMI component that tracks current sales was up two points to 47, and the measurement of sales expectations for the next six months rose four points to 57 in October. The prospective buyer traffic component was 29, strengthening two points from September.
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