Builder confidence in the market for newly built single-family homes increased four points in October to a level of 68 on the National Association of Home Builders/Wells Fargo Housing Market Index, the highest reading since May.
"It is encouraging to see builder confidence return to the high 60s levels we saw in the spring and summer," said NAHB Chief Economist Robert Dietz in a statement. "With a tight inventory of existing homes and promising growth in household formation, we can expect the new home market continue to strengthen at a modest rate in the months ahead."
The HMI consists of three components: Current sales conditions rose five points to 75; sales expectations in the next six months increased five points to 78; buyer traffic ticked up one point to 48.
The South’s HMI rose two points to 68 and the Northeast’s HMI went up one point to 50. The West and Midwest HMI both remained unchanged at 77 and 63, respectively.
