Confidence among US home builders has surged to the highest level in nearly a year, reflecting a brighter outlook for sales now and into 2017.
The National Association of Home Builders/Wells Fargo builder sentiment index released on Monday climbed six points this month to 65 following a downwardly revised reading of 59 in August.
Readings above 50 indicate more builders view sales conditions as good rather than poor. The index has been mostly at 58 since rising to 61 in January. The last time it reached 65 was October last year.
Builders’ view of current sales and a gauge of traffic by prospective buyers rose. Their outlook for sales over the next six months also increased.
Sales of new US homes accelerated in July to the fastest pace in nearly nine years.