U.S. Builder Confidence Hits 8-Month High in November
U.S. builder confidence for new single-family homes in November rose 2 points to 70 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest reading since March and the second highest index since 2005. The HMI component gauging current sales conditions was up 2 points to 77, and sales expectations in the next six months fell 1 point to 77. The component measuring buyer traffic increased 2 points to 50.
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