Builder confidence in the newly built single-family homes market increased two points in May to a level of 70 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
NAHB Chairman Randy Noel attributed the boost in confidence to growing consumer demand for single-family homes, but also noted that the increasing cost of lumber is hurting builders’ bottom lines.
Regionally, HMI scores in the West and Northeast remained unchanged at 76 and 55, respectively. Confidence in the South and Midwest both dropped one point to 72 and 65, respectively.
The HMI gauges builder perceptions of single-family home sales; levels over 50 indicate more builders perceive market conditions as positive than negative.
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