US Housing: Outlook for future sales strengthens - Wells Fargo

Analysts from Wells Fargo explained that builder sentiment held steady in May, after the NAHB/Wells Fargo Housing Market Index remained at 58.00 for the fourth month in a row, giving some positive signals for the future sales.

Key Quotes:

“The NAHB/Wells Fargo Housing Market Index (HMI) held steady at 58 in May. While the overall index was unchanged, the outlook for future sales rose, which bodes well for home sales in the coming months.”

“Home builder sentiment was supported by a 2-point rise in the future sales component. Both the present sales and buyer traffic components remained unchanged in May.”

“May is one of the most important months for homebuilders. While the overall NAHB HMI was unchanged, the improvement in the leading future sales component is encouraging.”