Description:

The HMI describes the current health for new single-family home sales and includes future expectations of market trends

Released:

1:00pm mid-month and includes data from the first half of the same month

Calculation:

The National Association of Home Builders collects the data from surveys delivered to 900 builders in which the association receives half on time. Questions are straight forward in regards to current sales for single-family homes and future predictions. The index is based on a scale from 0-100 with 50 being average.

Key Point:

The HMI indicator attempts to give insight into the always important housing market. The HMI has proven to be a good leading indicator at predicting future single-family home sales. However, on a relative basis to other indicators, the HMI does not create much buzz in the marketplace due to its small sample size. Data from 400 builders out of a membership pool of 72,000 is used to compile the HMI.