U.S. builder confidence for new single-family homes in October diminished for the tenth consecutive month, decreasing eight points from September to 38, the lowest reading since August 2012, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions shrunk nine points to 45, and the measurement of sales expectations in the next six months declined eleven points to 35 in October. The prospective buyer traffic component dropped six points from September to 25.
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