NAHB Builder Sentiment Reaches High in September

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index increased one point to 62 in September. Builder sentiment is at its highest reading since November 2005.

Builder Optimism Continues to Improve

• Builder confidence has risen steadily over the past four
  months, and reached a level of 62 in September. The report’s
  subcomponents were mixed, with gains in present sales and
  prospective buyers traffic and a slight decline in future sales.
• Home builders continue to feel optimistic about overall market
  fundamentals. The slight decrease in future sales is likely due
  to uncertainty about Fed policy and the global economy.

Steady Regional Gains

• Three of the four regional indices posted gains in September.
  The South and West continue to report the strongest builder
  sentiment. The South reported the largest increase and rose to
  the highest regional level of 66.
• The report’s headline and underlying details indicate a steady
  rise of homebuilder confidence, which is positive for our housing
  starts outlook.