Economic Snapshot: Builder confidence jumps in June

Builder confidence is on the rise this month, while housing starts are reporting year-over-year gains amid monthly declines.

Housing Market Index

The Housing Market Index rose five points in June to 59, the highest reading for the index since September 2014.

All three components of the HMI posted gains in June. The component gauging current sales conditions jumped seven points to 65. The index charting sales expectations in the next six months rose six points to 69. The component measuring buyer traffic increased five points to 44.

Looking at the three-month moving averages for regional HMI scores, the South and Northeast each increased three points to 60 and 44, respectively, while the West posted a two-point gain to 57. The Midwest was the only region to decline, dropping one point to 54.

Housing starts 

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Privately owned housing starts in May were at a seasonally adjusted annual rate of 1,036,000, a decrease of 11.1 percent from the revised April estimate of 1,165,000. However, housing starts are 5.1 percent above the May 2014 rate of 986,000.

Single-family housing starts in May were at a rate of 680,000, 5.4 percent below the revised April figure of 719,000. Single-family housing starts are running 6.7 percent ahead of 2014 through May.

Privately owned housing completions were at a seasonally adjusted annual rate of 1,034,000 in May, 4.7 percent above the revised April estimate of 988,000 and 14.5 percent above the May 2014 rate of 903,000.

Single-family housing completions were at a rate of 635,000 in May, 5.2 percent below the revised April rate of 670,000.

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