U.S. builder confidence for new single-family homes in July increased one point from June to 33, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the fifteenth straight month of readings below the 50 no-change mark. The HMI component gauging current sales conditions also grew one point to 36, and the measurement of sales expectations in the next six months rose three points to 43 in July. The component measuring prospective buyer traffic decreased one point from June to 20, the lowest reading since late 2022.
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