U.S. builder confidence for new single-family homes in October decreased four points from September to 40, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component which tracks current sales dropped four points to 46 and the measurement of sales expectations in the next six months fell five points to 44 in October. The prospective buyer traffic component was 26, four points lower than September.
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
