Home-Builder Confidence Rises to Early 2007 Level

The housing market outlook among builders of single-family homes has improved for a fourth consecutive month in August, bringing their closely-monitored confidence index to its highest level since February of 2007.
A two-point gain this month brings the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) to 37.
This jump builds on a six-point increase in July.
Every HMI component posted gains in August.
Those components gauging current sales conditions and traffic of prospective buyers each rose three points, to 39 and 31, respectively. The index component gauging sales expectations in the next six months moved up one point to 44. All were at their highest levels in more than five years.
“While there is still much room for improvement, we have come a long way from the depths of the recession and the outlook appears to be brightening,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla.
Regionally, builder confidence rose nine points to 42 in the Midwest and two points to 35 in the South. But confidence declined nine points to 25 in the Northeast and three points to 40 in the West in August.

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