The National Association of Home Builders/Wells Fargo Housing Market Index rose to 68 in October, one point above September’s reading.
“Builders are motivated by solid housing demand, fueled by a growing economy and a generational low for unemployment,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “Builders are also relieved that lumber prices have declined for three straight months from elevated levels earlier this summer, but they need to manage supply-side costs to keep home prices affordable.”
All three HMI components posted gains in October. The component measuring current sales conditions rose one point to 74; the component measuring sales expectations in the next six months grew one point to 75, while the component measuring buyer traffic increased four points to 53.
The regional three-month moving averages for HMI scores showed gains in two of the four regions. The Northeast rose three points to 57 and the South ticked up a point to 71. The West held steady at 74 and the Midwest declined two points to 57.
Read the NAHB release.