U.S. builder confidence for new single-family homes in October was 37, increasing five points from September, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the eighteenth straight month of readings below the 50 no-change mark, but the highest confidence level in five months. The HMI component gauging current sales conditions gained four points to 38, while the measurement of sales expectations in the next six months soared nine points to 54 in October. The component measuring prospective buyer traffic rose four 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