U.S. builder confidence for new single-family homes in May was 37, up three points from April, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions and the six-month sales expectations measurement each increased three points from April to 40 and 45, respectively. The component measuring prospective buyer traffic also gained three points from April 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