Confidence among home builders remained just above the key breakeven threshold of 50 for the second straight month, per the National Association of Home Builders (NAHB), as their Housing Market Index stayed at 51 in April. Any score over 50 on this index, which runs from 0 to 100, signals that more builders view conditions as good than poor.
Among the three index components, current and future sales expectations both remain in expansion territory at 57 and 60, respectively, though future expectations have softened as some buyers remain on the fence. The gauge judging buyer traffic moved higher, but it’s still in contraction territory.
What’s the bottom line? NAHB’s Chief Economist, Robert Dietz, explained, “April’s flat reading suggests potential for demand growth is there, but buyers are hesitating until they can better gauge where interest rates are headed.”