Builder confidence rose for the fifth month in a row in September, rising to its highest level since the summer of 2006 according to the National Association of Home Builders.
The NAHB-Wells Fargo Housing Market Index rose to a reading of 40 in September, a three point improvement over September. The index has risen dramatically over the past year, September of 2011 the index stood at a meager 14.
The survey is based on responses to three questions, which are then utilized to calculate a seasonally adjusted index. All three components of the Housing Market Index rose in the month of September. There is still room for improvement as a rating of 50 is required for a level of “good” confidence in sales.
The Midwest and West regions made the largest jumps, each showing an improvement of five points, to 40 and 43, respectively.