U.S. Builder Confidence Hits 12-Year High
U.S. builder confidence for new single-family homes rose 6 points to 71 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), the highest reading since June 2005.
The HMI component gauging current sales conditions rose 7 points to 78, and sales expectations in the next six months index increased 5 points to 78. The component measuring buyer traffic jumped 8 points to 54.
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