U.S. Builder Confidence Rises in May
U.S. builder confidence for new single-family homes in May rose 2 points to 70 from the month prior, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions grew 2 points to 76, while sales expectations in the next six months was even with April at 77 points. The component measuring buyer traffic also remained unchanged from the month prior at 51 points.
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