Homebuilder's Index Near Best Reading Of The Year

Improvement in the jobs market together with low mortgage rates are raising sentiment among the nation's homebuilders whose housing market index is up 4 points this month to 58 which, outside of September's 59, is the best reading of the year and of the recovery. Gains appear through the three components led by a 5 point gain in current sales to 62 which points to strength for November new home sales. Future sales are up 2 points to 66 with the traffic component, which continues to lag, up 4 points to 45. Regional data show wide gains led this month by the Northeast which is now in positive ground at 51 (readings over 50 indicate month-to-month growth). Housing remains comparatively flat to other sectors of the economy though today's report does hint at increasing strength. Next housing data on the calendar is tomorrow with housing starts.

Recent History Of This Indicator:
The NAHB housing market index for October was down 5 points to 54. The key in October's report was the traffic component which was down a full 6 points to 41. Lack of traffic pointed to lack of interest including lack of interest from the important group of first-time home buyers. The report's two other components were also down with present sales down 6 points to 57 and future sales down 3 points to 64.