Builder confidence rose in April after two months of static, according to data from the National Association of Home Builders (NAHB) and Wells Fargo. Builder confidence is at 63 on a 0-100 scale, up one point from last month. Builder confidence has held in the low 60’s for three straight months.
The Housing Market Index (HMI) is a weighted average of separate indices for three single-family data points. It asks respondents to rate the market conditions for the sale of new homes at present and in the next six months, as well as the traffic of prospective buyers of new homes. It falls in a range of 0-100.
“Ongoing job growth, favorable demographics and a low-interest rate environment will help to modestly spark sales growth in the near term,” NAHB chief economist Robert Dietz said in a statement. “However, supply-side headwinds that are putting upward pressure on housing costs will limit more robust growth in the housing market.”
The index that gauges current sales conditions ticked up one point to 69 and the index measuring the traffic of prospective buyers rose three points to 47.
The index that measures sales expectations in the next six months fell one point to 71.
Regionally, the HMI’s three-month rolling average climbed in the Northeast, Midwest and South. It remained unchanged in the West.