US Builder Confidence Climbs Above Breakeven in March

On Monday, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment in the market for newly built single-family homes increased 3 points to a reading of 51 in March. This is the fourth consecutive monthly increase in the HMI, and the highest level since July 2023. It is also the first time since July 2023 that the measure has exceeded the breakeven point of 50.

All three of the major HMI indices posted gains in March.

• The index charting current sales conditions increased 4 points to a reading of 56.
• The component measuring sales expectations in the next six months rose 2 points to a reading of 62.
• The component gauging traffic of prospective buyers climbed 2 points to a reading of 34.

Looking at the three-month moving averages for regional HMI scores, the Northeast increased 2 points to a reading of 59; the Midwest climbed 5 points to a reading of 41; the South posted a 4-point gain to a reading of 50; and the West recorded a 5-point increase to a reading of 43.