Housing Market Index jumps eight points in December ?01

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Indicating that low interest rates and solid house-price appreciation are motivating new home buyers, the National Association of Home Builders' Housing Market Index rose eight points to 57 in December 2001, according to an NAHB news release.|ret||ret||tab|

"This is the largest monthly increase in the HMI since 1998, and marks a return to the index's general range of strength prior to Sept. 11," said Bruce Smith, NAHB president and a home builder from Walnut Creek, Calif. |ret||ret||tab|

"Builders remain concerned about the situation in some markets particularly in the Midwest, where job losses have been most concentrated. However, the very favorable interest-rate environment and strong investment potential of homeownership are proving to be powerful incentives for buyers whose jobs have not been impacted by recent economic weakness," he added.|ret||ret||tab|

The HMI is derived from a monthly survey of builders. Home builders are asked to rate current sales of single-family homes and sales expectations for the next six months. |ret||ret||tab|

They also are asked to rate traffic of prospective buyers. Scores for responses to each component are used to calculate a seasonally adjusted overall index, where any number more than 50 indicates that more builders view sales conditions as good than poor.|ret||ret||tab|

Each of the three component indexes rose eight points in December 2001. The index gauging current sales of single-family homes rose to 60 from the previous month's 52 reading, while the index for expected sales in the next six months rose to 64 from a previous 56 and the index for traffic of prospective buyers rose to 46 from a previous 38.[[In-content Ad]]