NAHBs Housing Market Index (HMI), a monthly gauge of builder sentiment, remained unchanged in April at a level of 52. But a key component of the index asking builders to make a prognosis for their market over the next six months rose an impressive six points, to a score of 62.
The component gauging current home sales slipped one point to 58 in early April, and the component measuring the traffic of prospective home buyers remained unchanged from a March reading of 35.
Home builders surveyed for the HMI are asked to rate current sales of single-family homes and sales expectations for the coming six months as good, fair or poor. They are also asked to rate traffic of prospective buyers as high to very high, average or low to very low.
Any number over 50 indicates that more builders view sales conditions as good, rather than poor.