U.S. Builder Confidence Hits 5-Month High in October
U.S. builder confidence for new single-family homes in October rose 4 points to 68 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest index reading since last May. The HMI component gauging current sales conditions was up 5 points to 75, and sales expectations in the next six months index increased 5 points to 78. The component measuring buyer traffic inched upward 1 point to 48.
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