U.S. Builder Confidence Remains at 20-Year High
U.S. builder confidence for new single-family homes in January fell 1 point from December to 75 points on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). December and January were the two highest readings since July 1999. The robust outlook is attributed to low interest rates, a strong labor market and a demand for inventory.
The HMI component gauging current sales conditions dropped 3 points from December to 81, while the measurement of sales expectations in the next six months remained at 79 for January. The component measuring prospective buyer traffic was up 1 point in January to 58, the highest reading since December 2017.
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