The National Association of Home Builders/Wells Fargo Housing Market Index, or HMI, a monthly gauge of homebuilder sentiment, was released today. The index has been around for 25 years, and February's reading of 46, though a point lower than it was in January, is not far from its highest level since May 2006.
The measurement is derived from surveys given to homebuilders on a monthly basis. They are asked to rate three things: current sales conditions, sales expectations in the next six months, and the traffic of prospective buyers. A final HMI reading above 50 represents that "more builders view conditions as good than poor," according to today's press release.
Despite the one-point fall for February, the index has made great strides since the depths of the financial crisis, and has even rallied significantly in the last year. Showing a resurgence in the health of the real estate market, HMI has come back from a low of just 8 points in January 2009, and this month's reading of 46 is much improved from the 28 points that the HMI registered in February 2012.
The article U.S. Homebuilder Confidence up 64% From Last Year originally appeared on Fool.com.
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