U.S. Builder Confidence Down in January
U.S. builder confidence for new single-family homes in January fell 3 points from December 2020 to 83 points on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component measuring current sales conditions dropped 2 points in January to 90 and sales expectations in the next six months lost 2 points from December to 83. The component measuring prospective buyer traffic also fell 5 points in December to 68.
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