U.S. Builder Confidence Highest in 18 Years
U.S. builder confidence for new single-family homes in December rose 5 points to 74 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest report since July 1999. The HMI component gauging current sales conditions was up 4 points to 81, and sales expectations in the next six months increased 3 points to 79. The component measuring buyer traffic increased 8 points to 58.
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