Today’s housing market index

• A little more hope today that the worst of the housing slump may be easing.
• The traffic component on May was flat but readings on current and futures sales both improved.
• This gain was encouraged by low interest rates and re-emergence of first-time home buyers.

"This indicates that home builders feel we're at or near the bottom of the market and that positive signs lie ahead for builders and potential home buyers, provided that builder access to production credit significantly improves."- David Crowe (NAHB Chief Economist)

NAHB's overall HMI for May was based on a survey of 733 home builders, who answer questions about sales prospects now and in the near term. When the index exceeds 50, it means the number of builders who see "good" sales outnumber the number who see "poor" sales. The numbers used in compiling the index are adjusted for seasonal variations.

Source: WSJ , Reuters & MarketWatch