HMI: Builder Confidence Ticks Even Higher in April

The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) finds builder confidence rose 1 point to 63 in April, meeting the forecast. The HMI has held in the low 60s for the past three months.

Released On April 16, 2019 at 10:00 AM EST for April, 2019

“Builders report solid demand for new single-family homes but they are also grappling with affordability concerns stemming from a chronic shortage of construction workers and buildable lots,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn.

The NAFB/Wells Fargo & Co. (^WFC) Housing Market Index (HMI) gauges builder sentiment on current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” It also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.”

A seasonally adjusted index above 50 indicates more builders view conditions as good than poor.

“Ongoing job growth, favorable demographics and a low-interest rate environment will help to modestly spark sales growth in the near term,” said NAHB Chief Economist Robert Dietz. “However, supply-side headwinds that are putting upward pressure on housing costs will limit more robust growth in the housing market.”

The HMI component measuring traffic of prospective buyers rose three points to 47. The measure charting sales expectations in the next six months fell one point to 71.

The three-month moving averages for regional HMI scores in the Northeast posted a three-point increase to 51. The Midwest rose two points to 53, and the South inched up 1 point to 67. The West was unchanged at 69.