Builder confidence in the market for newly built, single-family homes improved four points to 58 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December. The HMI is up 11 points since December 2012.
Builder confidence in the market for newly built, single-family homes improved four points to 58 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December. The HMI is up 11 points since December 2012.
To calculate the HMI, the NAHB asks builders to rate sales, expected sales and buyer traffic as good, fair or poor. A number over 50 indicates that more builders view conditions as good than poor. The HMI has been above 50 for the past seven months, and all three components showed improvement in December.
"The recent spike in mortgage interest rates has not deterred consumers, as rates are still near historically low levels," said NAHB Chief Economist David Crowe, in a statement. "Following a two-month pause in the index, this uptick is due in part to release of the pent-up demand caused by the uncertainty generated by the October government shutdown. We continue to look for a gradual improvement in the housing recovery in the year ahead."