U.S. builder confidence for new single-family homes in November decreased six points from October to 34, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component, which tracks current sales, also dropped six points to 40, and the measurement of sales expectations in the next six months fell five points to 39 in November. The prospective buyer traffic component was 21, five points lower than October.
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