This month, builder confidence in the market for new single-family homes dropped one point to 46 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
This month, builder confidence in the market for new single-family homes dropped one point to 46 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
This is a continuation of the confidence plateau that followed eight consecutive months of gains. While the index remains near its highest level since May 2006, NAHB experts say builders are still uncertain about job growth and access to mortgage credit among consumers, rising material costs and limited availability of lots and labor.
The NAHB calculates the HMI based on survey responses regarding three aspects of the market: current sales, expected sales and traffic of prospective buyers. Builders rate these high, average or low, and those responses become a score. A score of 46 means roughly 46% of builders consider the current overall climate good.
Within the individual categories, current sales earned a score of 51 this month, expected sales rose to 50 and perceived traffic slipped four points to 32.