<h2>Housing Market Index</h2>
<p>The Housing Market Index (HMI) is a leading indicator of housing market conditions in the United States. It is published monthly by the National Association of Home Builders (NAHB).</p>

<h2>How It Works</h2>
<p>The HMI is calculated based on a survey of home builders. The survey asks builders about current sales conditions, sales expectations for the next six months, and buyer traffic. Each component is scored on a scale of 0 to 100, with higher scores indicating stronger market conditions.</p>
<p>The overall HMI is calculated as the average of the three component scores. A score of 50 or above indicates that more builders view conditions as good than poor.</p>

<h2>Why It Matters</h2>
<p>The HMI is a crucial indicator for investors, economists, and policymakers. It provides early insights into housing market trends, which can influence broader economic indicators like GDP growth and consumer spending.</p>
<p>For example, during the 2008 financial crisis, the HMI began to decline significantly several months before the broader economy entered a recession. This decline served as a warning signal for investors and policymakers, allowing them to adjust their strategies accordingly.</p>