Definition of Housing Market Index (HMI)

a weighted, seasonally-adjusted statistic derived from ratings for present single family sales, single family sales in the next six months, and buyers traffic. The HMI is published by the National Association of Home Builders (NAHB) and is based on a monthly survey sent to NAHB members, who are asked to rate general economic and housing market conditions. The first two components are measured on a scale of "good," "fair," and "poor," and the last one on a scale of "high," "average," and "low." A rating of 50 indicates that the number of positive, or good, responses received from the builders is about the same as the number of negative, or poor, responses. Ratings higher than 50 indicate more positive, or good, responses.