Builder confidence in the market for newly built single-family homes in May was 58, unchanged from the last four months, according to the National Association of Home Builders Housing Market Index.
A level above 50 on the HMI means more builders are confident than are not confident. The HMI consists of three components: sales expectations in the next six months increased three points in May to 65, while current sales conditions and buyer traffic stayed the same at 63 and 44, respectively.
“The fact that future sales expectations rose slightly this month shows that builders are confident that the market will continue to strengthen,” said NAHB Chief Economist Robert Dietz in a statement. “Job creation, low mortgage interest rates and pent-up demand will also spur growth in the single-family housing sector moving forward.”
Regionally, the South and Midwest reported one-point gains in the HMI in May to 59 and 58, respectively. The West held steady at 67 and the Northeast recorded a three-point drop to 41.
