US Builder Confidence Unchanged in April; Remains Above Breakeven Point

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported on Monday that builder sentiment in the market for newly built single-family homes was unchanged in April, holding steady at a reading of 51. That brings to an end four consecutive monthly increases in the HMI, which nevertheless remains above the key breakeven point of 50.

Two out of the three HMI components posted gains in April:

• The component charting current sales conditions increased 1 point to 57.
• The component gauging traffic of prospective buyers edged 1 point higher to 35.
• The component measuring sales expectations in the next six months fell 2 points to 60.

The regional breakdown (reported as a 3-month average) is as follows:

• The Northeast increased 4 points to 63.
• The Midwest climbed 5 points to 46.
• The South posted 1-point gain to 51.
• The West recorded a 4-point increase to 47.