U.S. Builder Confidence Reaches a Record High in September
U.S. builder confidence for new single-family homes in September rose 5 points from August to 83 points, a record high for the 35-year history of the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions climbed 4 points to 88 and the measurement of sales expectations in the next six months gained 6 points from August to 84. The component measuring prospective buyer traffic was also up 9 points from August to a record-high of 73.
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