The National Association of Home Builders/Wells Fargo Housing Market Index increased 6 points to 65 in September, up from a downwardly revised reading of 59 in August. September’s reading marked the highest HMI since October 2015.
“With the inventory of new and existing homes remaining tight, builders are confident that if they can build more homes they can sell them,” said NAHB Chief Economist Robert Dietz. “Though solid job creation and low interest rates are also fueling demand, builders continue to be hampered by supply-side constraints that include shortages of labor and lots.”
All three index components posted gains in September. The component measuring current sales conditions increased 6 points to 71, and the index measuring sales expectations increased 5 points to 71. The buyer traffic component rose 4 points to 48.
The regional three-month moving averages varied. The Northeast and South both rose 1 point to 42 and 64 respectively. The West rose 4 points to 73, while the Midwest was unchanged at 55.
Read the NAHB release.