The National Association of Home Builders/Wells Fargo builder sentiment index rose to 60 in June, which is the highest reading since January. The index had been unchanged at 58, for the last four months.
Readings greater than 50 mean more respondents reported good market conditions. The index is comprised of three components: buyer traffic, current sales conditions, and sales expectations.
Builders’ outlook for sales over the next six months and the measure of potential buyer traffic both climbed to the highest levels since November, at 70 and 47 respectively. A measure of the current sales conditions for single family homes increased by one point to 64.