Builders’ confidence in the new, single-family home market moved up for the sixth month in a row in October, according to the latest reading of the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The index edged up 1 point for the month with a reading of 41, the highest seen since June 2006.
The index, a compilation of three component indices, requires a reading of 51 or more to indicate that a majority of builders rate sales conditions as good rather than poor.
The monthly uptick came from the component measuring prospective-buyer traffic, which improved 5 points for an index reading of 35. The components measuring current sales conditions and anticipated sales for the next six months each remained unchanged in October at readings of 42 and 51, respectively.
See the NAHB’s full release on October’s builder confidence report.
Claire Easley is a senior editor at Builder.