The National Association of Homebuilders (NAHB) announced on Monday its housing market index (HMI) held steady at 62 in March, the highest reading since October 2018. 

Economists forecast the HMI to increase to 63.

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

Two out of the three HMI components were higher this month. The index charting sales expectations in the next six months rose 3 points to 71 and the current sales measure increased 2 points to 68. These gains, however, were offset by a 4-point drop in the component measuring traffic of prospective buyers, to 44 in March.

NAHB Chairman Greg Ugalde said: “Builders report the market is stabilizing following the slowdown at the end of 2018 and they anticipate a solid spring home buying season.”

Meanwhile, NAHB Chief Economist Robert Dietz added: “In a healthy sign for the housing market, more builders are saying that lower price points are selling well, and this was reflected in the government’s new home sales report released last week. Increased inventory of affordably priced homes - in markets where government policies support such construction - will enable more entry-level buyers to enter the market.”