The HMI is derived from a survey conducted by NAHB and WellsrnFargo Bank among NAHB’s new home builder-members.  The survey, which has been conducted for overrn30 years, asks respondents to define their perceptions of current single-familyrnhome sales and sales expectations for the next six months as “good,” “fair” orrn”poor.” The survey also asks builders to rate traffic of prospective buyers asrn”high to very high,” “average” or “low to very low.” Scores for each componentrnare then used to calculate a seasonally adjusted index where any number over 50rnindicates that more builders view conditions as good than poor.</p

All three of the index components also gained ground inrnApril after declining steadily since the beginning of the year.  The measure of sales expectations jumped fivernpoints to 64 and the component gauging current sales conditions rose from 58 torn61.  The component measuring buyer traffic,rnconsistently the lowest score in the series, increased four points to 41.<br /<br /"The HMI component index measuring future sales expectations rose five pointsrnin April to its highest level of the year,” said NAHB Chief Economist DavidrnCrowe. “This uptick shows builders are feeling optimistic that the housingrnmarket will continue to strengthen throughout 2015.”</p

Results were mixed for the regional three-month movingrnaverages.  The South was up one point torn56 and the Northwest was unchanged at 41. rnThe Midwest and West both retreated by two and four points respectively fromrntheir March levels to scores of 54 and 58.

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