The NAHB and Wells Fargo partner to produce a monthly Housing Market Index (HMI) that measures builder perceptions of current end expected sales of single-family homes. The HMI gained 3 points for the second month in a row, bringing it to a total of 20. The best score since May 2010, it’s still a long way from reaching positive numbers of 50 or above that would indicate more builders see single-family housing conditions as good versus those who feel things are not so great. “This second consecutive gain in the HMI is evidence that well-qualified buyers in select areas are being tempted back into the market by today’s extremely favorable mortgage rates and prices,” according to NAHB chief economist David Crowe.
In addition to levels rising for current sales, the other two market factors measured by the HMI also reached record levels this month. Confidence in expected future sales increased to 25–its highest rating since March–and the report’s component gauging traffic of prospective buyers rose to 15, the best number seen since May 2010. Regional figures improved significantly as well with only the West falling a disappointing 6 points after a big jump in October. The South climbed 2 points, the Northeast rose 3, and an impressive 8-point gain was reported in the Midwest. All current HMI data plus past reports can be reviewed at www.nahb.org/hmi.
