U.S. builder confidence for new single-family homes in September weakened for the ninth consecutive month, decreasing three points from August to 46, the lowest reading since May 2014, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI component gauging current sales conditions shrunk three points to 54 and the measurement of sales expectations in the next six months dipped one point to 46 in September. The component measuring prospective buyer traffic also dropped one point from August to 31.
Derived from a monthly NAHB survey, the HMI gauges builder perceptions of current single-family home sales as well as sales expectations for the next six months. Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good rather than poor. See NAHB