U. S. builder confidence challenges supply chain disruptions

Strong consumer demand has helped thrust builder confidence higher in October despite growing affordability challenges imposed by surging material prices and shortages.

Builder sentiment in the market for newly built single-family homes moved four points higher to 80 in October, according to the NAHB/Wells Fargo Housing Market Index (HMI) released on Monday.

The National Association of Home Builders (NAHB) Housing Market Index (HMI) is a gauge of builder opinion on the relative level of current and future single family home sales.

It is a diffusion index, which means that a reading above 50 indicates a favorable outlook on home sales; below 50 indicates a negative outlook. The latest reading of 80 is up 4 from last month’s reading at 76.