According to a report by the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly built single-family homes in June rose five points to 55. This marks the sixth straight month that builder confidence has increased and is the first time that levels have surpassed the midpoint of 50 since July 2022.
Each month, the NAHB/Wells Fargo HMI surveys builder perceptions of current single-family home sales and sales expectations for 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 for 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.