U.S. homebuilder confidence rose has risen more than expected in May, as attractive interest rates and a relatively low supply of existing homes has encouraged people to build new dwellings.
Builder confidence in the market for newly built, single-family homes improved three points to a 44 reading on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for May.
Analysts were looking for a more modest improvement to a reading of 43 from April's downwardly revised 41.
"Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates and strengthening local economies," said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C.
"This is definitely an encouraging sign even amidst rising challenges with regard to the cost and availability of building materials, lots and labor."
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.