Washingtron, DC, United States (4E) – Sentiment by home builders in the U.S. became more positive in August, as outlook for home sales improved due to a stronger labor market and declining mortgage rates.
The gauge for builder confidence in single-family homes market jumped two points to 55 in August, according to the National Association of Home Builders (NAHB) report released Monday. It was the second straight month for the index to go over 50, which is the reading that suggests more builders think conditions are good compared to those who think they are bad.
Economists forecast a reading of 53 for the month of August, according to a poll by The Wall Street Journal.
The increase in NAHB’s confidence index indicated gains in all three of its components. The index for current sales conditions grew to 58, and the expectations for future sales gauge inched up to 65. At the same time, the index for prospective-buyer traffic climbed to 42.
Based on regional breakdowns, the report showed unevenly distributed gains with Northwest and Midwest builders feeling more confident compared to those in the South and the West.