Housing market index improves from September
Posted on Monday, October 26, 2015 at 3:59:34 PM
October's national Housing Market Index (HMI) was 64, according to data compiled by the National Association of Home Builders/Wells Fargo. The index measures sentiment for the U.S. single-family housing market based on a survey of the more than 140,000 members of NAHB, with readings from between zero and 100. Any reading over 50 represents sales conditions viewed as good by homebuilders. October's preliminary index was a three-point improvement over September's 61 HMI.
The three components used to determine the index, also measured on a zero to 100 scale, are single-family sales: present, single-family sales: next six months, and traffic of prospective buyers. Those data readings were 70, 75 and 47, respectively. Both sales components improved over September's numbers and represent a continually steady growth over the past year.
All signs point to the promising endurance of this strong housing market, particularly after last month's National Association of Realtors' report confirmed existing-home sales of a seasonally adjusted annual rate of 5.55 million. Residential financing options are plentiful, and borrowing money from Home Loan Investment Bank gives homebuyers, first-time or otherwise, an opportunity to secure the perfect home at the perfect time.