WASHINGTON - The National Association of Home Builders reported Monday that its housing market index bumped up 2 points in May, reflecting continued strength in the housing market.
The group cited low interest rates and steady consumer confidence and said these factors should contribute to another strong showing for June.
The housing market index is derived from a monthly survey of builders on current sales of single-family homes and sales expectations for the next six months, as well as the traffic of prospective buyers. Scores for responses to each component are used to calculate a seasonally adjusted overall index; any number over 50 indicates that more builders view sales conditions as good than poor, the association said.
"Builders' assessments of the condition of the single-family housing market are remarkably upbeat, considering the state of the overall economy and the job market," Bruce Smith, president of the NAHB, said in a statement.