U.S. builder confidence for new single-family homes in February climbed seven points from January to 42, marking the highest level since September of 2022, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions increased six points to 46, while the measurement of sales expectations in the next six months rose 11 points to 48 in February. The prospective buyer traffic component grew six points to 29.
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