The National Association of Home Builders conducts a monthly survey of builders, asking their opinion on the market for newly built single-family homes. The resulting Housing Market Index scores builders’ answers on a scale where any number above 50 indicates more builders view conditions as good than poor. In May, the index rose three points to 37. The improvement included gains to all three of the index’s individual components, which measure current sales conditions, buyer traffic, and future expectations. The gains are an encouraging sign but NAHB chairman, Bill Owens, says the market remains soft. “The housing market remains soft as higher mortgage rates, rising gas prices and economic uncertainty related to the war in Iran continue to dampen buyer demand,” Owens said. Builders are also contending with higher land, labor, and construction costs but, despite these challenges, saw a month-over-month bump in confidence in May. (source)
