Builder confidence in the market for new single-family homes increased two points to 55 on the National Association of Home Builders Housing Market Index in August. This is the highest the HMI has been since January.
The HMI is based on builder perceptions of home sales, sales expectations and prospective buyer traffic. A score above 50 means more builders view conditions as good than poor.
"Each of the three components of the HMI registered consecutive gains for the past three months, which is a positive sign that builder confidence appears to be firming following an uneven spring," said NAHB Chief Economist David Crowe in a statement. "Factors contributing to this rise include sustained job growth, historically low mortgage rates and affordable home prices, which are helping to unleash pent-up demand."
Every region saw a rise in its three-month moving average HMI score in August. The Midwest saw the largest increase, going from 48 to 55. The South had the smallest increase, going from 51 to 52.
