Builder confidence in the market for newly built single-family homes increased four points to a level of 68 in August, according to the National Association of Home Builders Housing Market Index.
The HMI consists of three components: Current sales conditions grew four points to 74, sales expectations in the next six months rose five points to 78, buyer traffic increased one point to 49.
The Northeast HMI rose one point to 48, while the West, South and Midwest HMI all remained unchanged at 75, 67 and 66, respectively.
"The fact that builder confidence has returned to the healthy levels we saw this spring is consistent with our forecast for a gradual strengthening in the housing market," said NAHB Chief Economist Robert Dietz in a statement. "GDP growth improved in the second quarter, which helped sustain housing demand. However, builders continue to face supply-side challenges, such as lot and labor shortages and rising building material costs."
