NAHB Housing Market Index: Back To Late 2005 Levels

wall-street-etfJill Mislinski: The National Association of Home Builders (NAHB) Housing Market Index (HMI) is a gauge of builder opinion on the relative level of current and future single-family home sales. It is a diffusion index, which means that a reading above 50 indicates a favorable outlook on home sales; below 50 indicates a negative outlook.

The latest reading of 62, a decrease from the previous month’s upwardly revised figure, was below the Investing.com forecast of 64.

Here is the opening of this morning’s monthly report:

Builder confidence in the market for newly constructed single-family homes slipped three points to 62 in November from an upwardly revised October reading on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). [link to report]

Here is the historical series, which dates from 1985.

Housing Market Index

The HMI correlates fairly closely with broad measures of consumer confidence. Here is a pair of overlays with the Michigan Consumer Sentiment Index and the Conference Board’s Consumer Confidence Index.

HMI and Consumer Sentiment

 

The HMI is an interesting prelude to tomorrow’s release of Building Permits and Housing Starts.

This article is brought to you courtesy of Jill Mislinski from Advisor Perspectives.

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