WASHINGTON-- The National Association of Home Builders' (NAHB) Housing Market Index (HMI) rose four points to 61 in January. January’s HMI is a point above the HMI in August 2001 and is the index’s highest reading since November 2000.
Bruce Smith, NAHB president, attributed the swift recovery from a 47 reading in October of 2001 to improving consumer confidence, favorable interest rates on home mortgages and solid investment aspects of homeownership. He noted that this improvement is a good sign for the overall economy, since housing and related industries account for a substantial portion of the Gross Domestic Product.