U.S. Builder Confidence Holds Strong in May
U.S. builder confidence for new single-family homes in May was unchanged from April at 83 points, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions remained at 88 and the measurement of sales expectations in the next six months gained 1 point from April to 81. The component measuring prospective buyer traffic dropped one point to 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