US Builder Confidence Drops in May

On Wednesday, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) showed that builder sentiment in the market for newly built single-family homes fell 6 points from April to a reading of 45 in May. The Index is once again below the breakeven point of 50.

All three HMI component indices posted declines in May.

• The component charting current sales conditions declined 6 points to 51.
• The component measuring sales expectations in the next six months fell 9 points to 51.
• The component that gauges the traffic of prospective buyers declined 4 points to 30.

The three-month moving averages for regional HMI scores mostly declined.

• The Northeast fell 2 points to a reading of 61.
• The Midwest increased 3 points to a reading of 49.
• The South posted a 2-point decline to a reading of 49
• The West dropped 4 points to a reading of 43.