Single family homebuilder confidence was up six points, to 57, in the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for July 2013. It's the third month in a row with a builders confidence increase. The index is now at its highest level since January 2006.
"Today's report is particularly encouraging in that it shows improvement in builder confidence across every region as well as solid gains in current sales conditions, traffic of prospective buyers and sales expectations for the next six months," noted NAHB Chairman Rick Judson, a home builder from Charlotte, NC.
He added, however, that "This positive momentum could be disrupted by threats on the policy side, particularly with regard to the mortgage interest deduction and federal support for the housing finance system."
"Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten," noted NAHB Chief Economist David Crowe. "Meanwhile, as the infrastructure that supplies home building returns, some previously skyrocketing building material costs have begun to soften."
All three HMI components showed July gains.
The component gauging current sales conditions was up five points to 60, to reach its highest level since early 2006.
The component gauging sales expectations for the next six months was up seven points to 67, reaching its highest level since late-2005.
The component gauging traffic of prospective buyers was up five points to 45--also reaching its highest level since late-2005.
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