Builder confidence rises three points in November, reaches 18-month high

Builder confidence in the new single-family homes market rose by three points to 20 on the NAHB/Wells Fargo Housing Market Index (HMI) for November, released today. The gain builds on a revised three-point increase in October, and brings the confidence gauge to its highest level since May of 2010.

Each of the HMI's three component indexes continued to rise from the previous month. The component gauging current sales conditions rose three points to 20, while the component gauging future sales expectations rose two points to 25, its highest level since March of 2011. The component gauging traffic of prospective buyers rose one point to 15, which was its highest point since May of 2010.

The HMI rose in three out of four regions in November, with a three-point gain to 17 registered in the Northeast, an eight-point gain to 23 registered in the Midwest, and a two-point gain to 21 registered in the South. After posting a big increase in October, the West returned to trend this month with a six-point decline to 15.

For more information on the HMI, click here.