The NAHB/Wells Fargo Housing Market Index is a widely used indicator of sentiment among US single-family home builders.
Participating builders evaluate current single-family sales, sales prospects over the next six months, and potential buyer traffic.
HMI readings above 50 reflect a generally favorable view of the market and industry outlook.
The three-component HMIs are seasonally adjusted and weighted to achieve the highest correlation with housing completions over the next six months based on historical data.
The 48 Hour Rule refers to the part of the mortgage allocation process related to the purchase and sale of Mortgage Backed Securities (MBS) to be announced (TBA).
A major improvement is a long-term upgrade, adaptation, or improvement to a property that adds value to it, often including structural changes or restoration.
Effective gross income is calculated by adding the potential gross rental income to other income and subtracting the vacancy and loan costs of the rental property.
A land lease is a contract whereby the tenant can develop the property for the duration of the lease, after which it is transferred to the property owner.