WASHINGTON–Home builders are feeling optimistic again.
After declining over the summer, the National Association of Home Builder’s most recent monthly confidence gauge jumped four points to a reading of 60, the highest reading since May. Any reading over 50 signals improvement.
According to the NAHB, every component of the Confidence Index increased in October, with the gauges of current sales conditions and sales forecast over the coming six months both rising five points. It has rarely topped the neutral 50 line, even at the peak of the housing bubble a decade ago, the NAHB said.
NAHB Chief Economist Robert Dietz said he expects economic fundamentals, like tight housing inventory and “promising growth in household formation,” to buoy the market.