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U.S. homebuilder confidence improves in August

Staff Writer |
Homebuilder confidence improved in the month of August, the National Association of Home Builders revealed in a report.

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The report said the NAHB/Wells Fargo Housing Market Index climbed to 60 in August from a downwardly revised 58 in July.

Economists had expected the homebuilder confidence index to inch up to 60 from the 59 originally reported for the previous month.

"Builder confidence remains solid in the aftermath of weak GDP reports that were offset by positive job growth in July," said NAHB Chief Economist Robert Dietz.

He added, "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."

The increase by the homebuilder confidence reflected increases by two of the three components that make up the index.

The component gauging current sales conditions rose by two points to 65, and the index charting sales expectations in the next six months inched up by one point to 67.

On the other hand, the NAHB said the component measuring buyer traffic edged down by one point to 44.

The Commerce Department is scheduled to release a separate report on new residential construction in the month of July on Tuesday.

Housing starts are expected to dip to an annual rate of 1.180 million in July after jumping to a rate of 1.189 million in June.

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