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…