U.S. Builder Confidence Surges in September

September 2016

Builder confidence in the market for newly built, single-family homes in September jumped six points to 65 from a revised August reading of 59. This marks the highest HMI level since October 2015 according to the National Association of Home Builders.

All three HMI components rose this month, with current sales conditions rising 6 points to 71 and sales expectations also climbing 5 points to 71. The third component measuring traffic of prospective buyers went up 4 points to 73.

Even with decrease in U.S. housing starts, builders in many markets are confident that the single-family housing market will continue the upward momentum to build throughout the remainder of the year and into 2017.

Derived from a monthly NAHB survey, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months. Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good rather than poor.

For more information: NAHB

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