Home Remodeling a Forward Indicator of Housing Bottom?

Builders who specialize in home remodeling are seeing a better market than they have in years according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) released on Friday. The index rose to 46.5 in the first quarter of the year from 41.5 in the fourth quarter of 2010.

The current RMI is the highest the index has been since the fourth quarter of 2006.

The RMI is based on builders' perceptions of current remodeling activity and on indicators of future activity such as calls for bids. In addition to the RMI there is an index reflecting each of its two components. Any score of less than 50 indicates more respondents view the market activity as lower (compared to the prior quarter) than report that it is higher.

Current market conditions increased from 43.3 in the fourth quarter to 46.1 while future market indicators jumped to 46.8 from 39.7.

Source:  MortgageNewsDaily.com