Homebuilder Sentiment in U.S. Matches Highest Level Since 2005

Bloomberg
(12/17/2013 10:49 AM, Lorraine Woellert)

Confidence among U.S. homebuilders increased more than forecast in December, matching the highest level in eight years.

The National Association of Home Builders/Wells Fargo builder sentiment gauge rose to 58, exceeding the highest projection in a Bloomberg survey, from 54 in November, according to a report today from the Washington-based group. The median forecast called for the measure to rise to 55. An index above 50 means more respondents report good market conditions.

The figures show builders are confident the recent slowdown in sales caused by an increase in mortgage rates will prove temporary. A measure of current demand climbed to the highest since December 2005, while gauges of sales prospects and buyer traffic picked up, indicating housing will be a source of strength for the economy next year.