The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) rose five points in June, more than expected, from 54 to 59 points, hitting its highest level since September, 2014, indicating confidence among home builders. While any number above 50 indicates builders see conditions as favorable, Reuters says economists they polled predicted the rise would be only two points to 56.
There is “a growing optimism among builders that housing will continue to strengthen in the months ahead,” said NAHB Chief Economist David Crowe. “At the same time, builders remain sensitive to consumers’ ability to buy a new home.”
The HMI is comprised of three components: the single-family home sales component rose seven points to 65. Expectations of single-family sales for the coming six months increased six points to 69, while MHProNews understands prospective buyer traffic rose five points to 44.
Previously, the government said new home sales rose 6.8 percent in April, while construction spending rose to its highest level since 2006. Regionally, foxbusiness says builder confidence increased three points to 60 in the South, three points to 44 in the Northeast, and two points in the West to 57. The Midwest dropped a point to 54. ##
(Photo credit: housingwire)
Article submitted by Matthew J. Silver to Daily Business News-MHProNews.