U.S. builder confidence for new single-family homes in January climbed four points from December to 35, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions increased four points to 40, while the measurement of sales expectations in the next six months rose two points to 37 in January. The prospective buyer traffic component grew three points to 23.
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