Homebuilder confidence ticked up in August with an increase in construction and rise in the sales of new homes.
The National Association of Home Builders said Monday that sentiment increased 2 points to 60 from a reading of 58 in July, according to the housing market index.
{mosads}”New construction and new home sales are on the rise in most areas of the country, and this is helping to boost builder sentiment,” said NAHB Chairman Ed Brady, a homebuilder and developer from Bloomington, Ill.
Two of the three index components posted gains in August.
The component gauging current sales conditions rose 2 points to 65, while the index charting sales expectations in the next six months increased 1 point to 67. A measure of buyer traffic fell 1 point to 44.
“Builder confidence remains solid in the aftermath of weak GDP reports that were offset by positive job growth in July,” said Robert Dietz, the NAHB’s chief economist .
“Historically low mortgage rates, increased household formations and a firming labor market will help keep housing on an upward path during the rest of the year,” Dietz said.
Any scores over 50 indicates that more builders view conditions as good than poor.
Regionally, the three-month moving averages showed increases in two of four areas.
The South posted a 2-point uptick to 63 and the Northeast saw a 2-point rise to 41. The West’s level was unchanged at 69, and the Midwest dropped 2 points to 55.