U.S. Builder Confidence Down in February
U.S. builder confidence for new single-family homes in February rose 1 point from January to 84 points on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component measuring current sales conditions stayed even in February at 90 and sales expectations for the next six months lost 3 points from January to 80. The component measuring prospective buyer traffic rose 4 points in February to 72.
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