The National Association of Homebuilders (NAHB) announced on Thursday its housing market index (HMI) rose 1 point to 83 in April from 82 in March. 

Economists had forecast the HMI to rise to 83.

A reading over 50 indicates more builders view conditions as good than poor.

Two of three HMI components recorded gains this month. The indicator gauging current sales conditions rose 1 point to 88 in April, and the component measuring traffic of prospective buyers increased 3 points to 75. Meanwhile, the measure charting sales expectations dropped 2 points to 81.

NAHB Chairman Chuck Fowke noted: “Despite strong buyer traffic, builders continue to face challenges to add much-needed housing supply to the market. The supply chain for residential construction is tight, particularly regarding the cost and availability of lumber, appliances, and other building materials. Though builders are seeking to keep home prices affordable in a market in need of more inventory, policymakers must find ways to increase the supply of building materials as the economy runs hot in 2021.”

Meanwhile, NAHB Chief Economist Robert Dietz said: “While mortgage interest rates have trended higher since February and home prices continue to outstrip inflation, housing demand appears to be unwavering for now as buyer traffic reached its highest level since November. NAHB’s forecast is for ongoing growth in single-family construction in 2021, albeit at a lower growth rate than realized in 2020.”