US Builder Confidence Falls to Three Year Low
U.S. builder confidence in the market for new homes in December dropped 4 points to 56 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). That is the lowest level since hitting 54 in May 2015. All major HMI components fell in November with current sales conditions decreasing 6 points to 61 and expectations in the next six months 4 points lower at 61. The component gauging buyer traffic fell 2 points to 43.
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