Builder Confidence on the Rise
October 2015
Builder confidence for newly constructed single-family homes increased one point to a level of 62 on the National Association of Home Builders/ Wells Fargo Housing Market Index (HMI). This has been the highest rating since October 2005. NAHM is projecting about 1.1 million housing starts this year and the newest HMI report is consistent with the forecast. Two of the three HIM components had gains as well in September, the index measuring buyer traffic increased 2 points to 47, and the component gauging current sales conditions rose 1 point to 67.
The HMI is derived from a monthly survey at the National Association of Home Builders and gauges builder perceptions of current single-family home sales and sales expectations. Scores for each component are used to calculate seasonally adjusted index where numbers over 50 indicated that more builders view conditions as good than poor.