U.S. homebuilder confidence rose in August to the highest level since February 2007 as more buyers entered the market, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
The index rose two points to 37, beating a median forecast by Bloomberg that projected no change. The index's component measuring current sales conditions and traffic of prospective buyers rose one point. The component measuring sales expectations in the next six months rose one point.
However, the index remains below the threshold of 50, which indicates that the majority of homebuilders view conditions favorably. “A significant rise in homebuilder confidence won’t materialize until we see signs of resolving economic and political uncertainty,” said Mitchell Hochberg, principal of New York developer Madden Real Estate Ventures.