Builder confidence in the market for new, single-family homes rose 8 points in June to 52 on the National Association of Home Builders/ Wells Fargo Housing Market Index (HMI). A score over 50 indicates that more builders view conditions as good than poor, and the HMI has not been over 50 since April 2006. The eight-point jump was also the largest one-month gain since August and September 2002.
To calculate the HMI, the NAHB asks builders to rate sales, expected sales and buyer traffic as good, fair or poor. All three categories saw improvement in June: current sales rose 8 points to 56, expected sales rose 9 points to 61 and buyer traffic rose 7 points to 40. Expectation of future sales is at its highest since March 2006.
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