The National Association of Home Builders/Wells Fargo Housing Market Index increased to 76 in September.
“Builder sentiment has been gradually cooling since the HMI hit an all-time high reading of 90 last November,” said NAHB Chairman Chuck Fowke. “The September data show stability as some building material cost challenges ease, particularly for softwood lumber.”
“The single-family building market has moved off the unsustainably hot pace of construction of last fall and has reached a still hot but more stable level of activity, as reflected in the September HMI,” said NAHB Chief Economist Robert Dietz. “While building material challenges persist, the rate of cost growth has eased for some products, but the job openings rate in construction is trending higher.”
The HMI component measuring buyer traffic increased two points to 61. The component measuring current sales conditions rose one point to 81, and the component measuring sales expectations in the next sixth months remained unchanged at 81.
Looking at the three-month moving averages for regional HMI scores, the Midwest remained unchanged at 68, the Northeast fell two points to 72, the South posted a two-point decline to 80, and the West dropped two points to 83.
Read the NAHB release.