U.S. builder confidence for new single-family homes in October increased four points from September to 80, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions grew five points to 87 and the measurement of sales expectations in the next six months rose three points to 84 in October. The component measuring prospective buyer traffic gained four points from September to 65.
Derived from a monthly NAHB survey, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months. Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good rather than poor. See NAHB