The National Association of Home Builders/Wells Fargo Housing Market Index grew to 70 in May, a two point increase from April’s reading of 68.
“This report shows that builders’ optimism in the housing market is solidifying, even as they deal with higher building material costs and shortages of lots and labor,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.
Two of the three HMI components grew in May. The component measuring current sales conditions increased two points to 76; the component measuring sales expectations jumped four points to 79, and the component measuring buyer traffic fell one point to 51.
The regional three-month moving averages for HMI scores were showed gains in three of the four regions. The Northeast and South both grew three points to 49 and 71, respectively, while the Midwest held steady at 68. The West rose one point 78.
Read the NAHB release.