US home builder confidence improves in October

Home builder confidence for newly built, single family homes in America rose for the first time in five months according to the National Association of Home Builders (NAHB).

Confidence on the NAHB/Wells Fargo Housing Market Index(HMI) rose three points to 16 for October, which returns the index to a level last seen back in June this year.

A reading of under 50 indicates negative sentiment about the market and the last time the HMI was above 50 was in April 2006. (article continues below)

David Crowe, the chief economist at NAHB, says in a statement: “The new-homes market is finally moving past the lull that occurred when the home buyer tax credits expired and economic growth stalled this summer.”

According to the NAHB, builder confidence improved across every region of America in October.

Bob Jones, the chairman of NAHB, says: “Builders are stating to some flickers of interest among buyers, and are hopeful that this interest will translate to more sales in the coming months.”