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Sunday, November 17, 2019
HomeNewsEconomyHMI: Builder Confidence Ticks Higher in June

HMI: Builder Confidence Ticks Higher in June

Real Estate Market Going Up Concept Illustration. (Photo: AdobeStock)
Real Estate Market Going Up Concept Illustration. (Photo: AdobeStock)
Real Estate Market Going Up Concept Illustration. (Photo: AdobeStock)

The National Association of Home Builders (NAHB) Housing Market Index (HMI) ticked slightly higher to 65 in July, a solid reading that met the consensus forecast.


IndicatorPriorConsensus ForecastForecast RangeResult
Housing Market Index64 65 64  to 66 65 

Methodology for HMI

The HMI is a weighted average of separate diffusion indices for these three key single-family series. The first two series are rated on a scale of Good, Fair and Poor and the last is rated on a scale of High/Very High, Average, and Low/Very Low.

A diffusion index is calculated for each series by applying the formula “(Good-Poor+100)/2” to the present and future sales series and “(High/Very High – Low/Very Low + 100)/2” to the traffic series. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

Based on this calculation, the HMI can range between 0 and 100.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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