New home builders regained some of the confidence in
the market they had displayed in September after wavering significantly in
October. The National Association of
Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), a measure of
builder attitudes about the current and prospective market for newly built
single-family homes, rose four points to 58 this month after falling five
points from September to October.
The HMI is compiled from responses to a monthly survey NAHB conducts among
its new home builder members. The survey
asks for their perceptions about current single family home sales and their
expectations for sales over the next six months as “good,” “fair” or “poor.”
The survey also asks builders to rate traffic of prospective buyers as “high to
very high,” “average” or “low to very low.” 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 than poor.