U.S. Builder Confidence at 20-Month High
U.S. builder confidence for new single-family homes in October increased 3 points from September to 71 points, the highest level since February 2018, on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions gained 3 points to 78, while the measurement of sales expectations in the next six months rose 6 points from September to 76. The component measuring prospective buyer traffic was up 4 points from September to 54.
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