Homebuilder Confidence Reached Yearly High in June

The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) rose 5 points to a level of 59 in June, the highest reading since September.

All three index components experienced gains for the month. Buyer traffic rose 5 points to 44, current sales conditions rose 7 points to 65, and expectations for sales in the next six months rose 6 points to 69.

All four regions posted month-over-month gains in June. The Northeast and West each posted monthly gains of 5 points, rising to 47 and 61 points respectively. Expectations in the Midwest rose 8 points to 57, and the South rose 4 points to 63.

NAHB Chief Economist David Crowe noted that the index indicates “[growing]optimism among builders that housing will continue to strengthen in the months ahead.”