WASHINGTON—The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) saw its third consecutive monthly gain through July. Builder confidence in the market for newly built, single-family homes rose six points to 57, which is the strongest reading since January of 2006.
All three HMI components –builder perceptions of current single-family home sales, sales expectations for the next six months and ratings of traffic of prospective buyers –posted gains in July. All four regions also posted gains in their HMI scores’ three-month moving averages. The West measured a three-point gain to 51; the Northeast measured a four-point gain to 40; the South posted a five-point gain to 50; and the Midwest reported an eight-point gain to 54.
“Today’s report is particularly encouraging in that it shows improvement in builder confidence across every region as well as solid gains in current sales conditions, traffic of prospective buyers and sales expectations for the next six months,” noted NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. He does caution that “This positive momentum could be disrupted by threats on the policy side, particularly with regard to the mortgage interest deduction and federal support for the housing finance system.”
More information about this report or the NAHB in general can be found here.