Builder confidence hit a new high in April, increasing one point to 63, according to the National Association of Home Builders’ monthly confidence index data.
NAHB's latest HMI data indicates a six-month high. Current sales conditions increased one point to 69, while expectations for the next six months dropped a point to a 71 reading. The buyer traffic sub-index increased three points to 47; any reading over 50 indicates a positive reading. MarketWatch reports that the index data "says more about the past six months than it does about the path forward for housing," as builder confidence "clawed its way back," from its eight point drop in November 2018.
Builders have under-built their inventory in this business cycle, in stark contrast to the bubble years, so consumer demand remains robust. When the Commerce Department reports on March new construction Friday, economists surveyed by MarketWatch expect the pace of building to have picked up more than 5 percent for the month.