US Builder Sentiment Up for Fifth Consecutive Month in May

On Tuesday (5-16-23), 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 5 points in May to a reading of 50. This marks the fifth consecutive month of gains and the first time that the sentiment level has reached the midpoint mark of 50 since July 2022.

All three HMI components posted gains in May. The HMI index gauging current sales conditions increased five points to a reading of 56. The HMI component that charts sales expectations in the next six months rose seven points to a reading of 57. The HMI component that measures traffic of prospective buyers increased two points to a reading of 33.

Looking at the three-month moving averages for regional HMI scores, the Northeast held steady at a reading of 45; the Midwest was up two points to a reading of 39; the South increased three points to a reading of 52; and the West posted a three-point gain to a reading of 41.

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