US Builder Sentiment Up for Third Consecutive Month in March

On Wednesday (3-15-23), 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 2 points in March to a reading of 44. This marks the third consecutive month of gains. However, any reading below 50 indicates that more builders view conditions as poor rather than good.

Two out of the three HMI components posted gains in March. The HMI current sales conditions increased 2 points to a reading of 49. The gauge that measures traffic of prospective buyers improved 3 points to a reading of 31. The component charting sales expectations in the next six months declined by 1 point to a reading of 47.

Looking at the three-month moving averages for regional HMI scores, the Northeast rose five points to a reading of 42; the Midwest was up one point to a reading of 34; the South increased five points to a reading of 45; and the West posted a four-point gain to a reading of 34.