The latest HMI data saw a six-point jump to a 71 level. All three HMI components posted robust gains this month: the component gauging current sales conditions rose seven points to 78, the index charting sales expectations in the next six months saw a five-point rise to 78 and the component measuring buyer traffic jumped eight points to 54. On a regional level, the Midwest HMI increased three points to 68 and the South HMI inched up by one point to 68. However, the West HMI dropped three points to 76 and the Northeast HMI dipped by one point to 48.
“While builders are clearly confident, we expect some moderation in the index moving forward,” said NAHB Chief Economist Robert Dietz. “Builders continue to face a number of challenges, including rising material prices, higher mortgage rates, and shortages of lots and labor.”