by Bill McBride on 3/15/2017 10:17:00 AM
Wednesday, March 15, 2017
The National Association of Home Builders (NAHB) reported the housing market index (HMI) was at 71 in March, up from 65 in February. Any number above 50 indicates that more builders view sales conditions as good than poor.
From NAHB: Builder Confidence Hits 12-Year High
Builder confidence in the market for newly-built single-family homes jumped six points to a level of 71 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest reading since June 2005.Click on graph for larger image.
“While builders are clearly confident, we expect some moderation in the index moving forward,” said NAHB Chief Economist Robert Dietz. “Builders continue to face a number of challenges, including rising material prices, higher mortgage rates, and shortages of lots and labor.”
All three HMI components posted robust gains in March. The component gauging current sales conditions increased seven points to 78 while the index charting sales expectations in the next six months rose five points to 78. Meanwhile, the component measuring buyer traffic jumped eight points to 54.
Looking at the three-month moving averages for regional HMI scores, the Midwest increased three points to 68 and the South rose one point to 68. The West dipped three points to 76 and the Northeast edged one point lower to 48.
This graph show the NAHB index since Jan 1985.
This was above the consensus forecast and another solid reading.