National Association of Home Builders Reports Builder Confidence Up
The National Association of Home Builders (NAHB) (NYSEARCA:XHB) Housing Market Index (HMI) is a gauge of builder opinion on the relative level of current and future single-family home sales.
It is a diffusion index, which means that a reading above 50 indicates a favorable outlook on home sales; below 50 indicates a negative outlook.
The latest reading of 72 is up 14 from last month’s 58.
Here’s an introduction from this morning’s blog update:
In a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest NAHB/Wells Fargo Housing Market Index (HMI) released today. The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation.
Here is the historical series, which dates from 1985.
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The HMI correlates fairly closely with broad measures of consumer confidence. Here is a pair of overlays with the Michigan Consumer Sentiment Index (through the previous month) and the Conference Board’s Consumer Confidence Index (through the current month).