U.S. Builder Confidence Increases in May
U.S. builder confidence for new single-family homes in May rose 7 points from April to 37 points on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions climbed 6 points to 42, while the measurement of sales expectations in the next six months gained 10 points from April to 46. The component measuring prospective buyer traffic was also up 8 points from April to 21.
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