U.S. builder confidence for new single-family homes in May climbed five points from April to 50, marking the fifth consecutive month of increases, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions grew five points to 56 and the measurement of sales expectations in the next six months rose seven points to 57 in May. The prospective buyer traffic component was 33, two points higher than April.
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