Rise in Homebuilder Confidence Continues

The National Association of Home Builders/Wells Fargo Housing Market Index rose 1 point to a level of 61 in August, the highest reading since November 2005.

Two of the three index components posted gains for the month. Current sales conditions rose 1 point to 66, while the buyer traffic index rose 2 points to 45.  The index for sales expectations in the next six months was unchanged at 70.

Three of the four regions posted gains in their three-month moving averages. The Northeast region was unchanged at 46 points, while the West and Midwest rose three points to 63 and 58. The South added 2 points, rising to 63.

“Today’s report is consistent with our forecast for a gradual strengthening of the single-family housing sector in 2015,” noted NAHB Chief Economist David Crowe. “Job and economic gains should keep the market moving forward at a modest pace throughout the rest of the year.”

Read the NAHB/Wells Fargo release.