U.S. builder confidence for new single-family homes in June decreased for the sixth straight month, decreased two points from May to 67, the lowest reading in two years, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions dipped one point to 77 and the measurement of sales expectations in the next six months shrunk two points to 61 in June. The component measuring prospective buyer traffic decreased five points from May to 48, the first drop below 50 since June 2020.
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