The National Association of Homebuilders (NAHB) reported on Monday its
housing market index (HMI) increased to 45 in April from an unrevised March reading of 44. That marked the fourth straight monthly increase in builder
confidence and was the highest reading since September 2022 (46).
Economists had expected the HMI to stay unchanged at 44.
A reading over 50 indicates more builders view conditions as good than
Two of three of the major HMI
components recorded gains in early April, both returning to the 50+ range for
the first time since June 2022. The component charting sales expectations in the
next six months jumped 3 points to 50, and the component tracking current sales
conditions increased 2 points to 51. At the same time, the component measuring
traffic of prospective buyers was unchanged at 31, failing to improve for the first
time this year.
Commenting on the latest report, NAHB Chairman Alicia Huey noted that builder
confidence had improved for the fourth straight month due to a lack of resale
inventory despite elevated interest rates. “Nonetheless, the industry continues
to be plagued by building material issues, including lack of access to electrical
transformer equipment,” she added.