U.S. builder confidence for new single-family homes in December increased three points from November to 37, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component that tracks current sales was unchanged at 40, and the measurement of sales expectations in the next six months rose six points to 45 in December. The prospective buyer traffic component was 24, three points higher than November.
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