After the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index dropped for three straight months, builders showed renewed confidence in May. The index for May raised three points to 44 after an April which had fallen to 41. The index has three components: current sales, expected sales, and traffic. All three components raised for May, with expected sales setting a seven-year high. While all three components raised, and expected sales did set a high point, the other two are still below December and January peaks. Builders also report that buyers are becoming more aggressive with similar interest rates, allowing builders to raise prices in some competitive markets.
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