Homebuilder sentiment rose more than expected in June and to the best level since January after holding steady during the four months in between.
The National Association of Homebuilders’ housing market index for June climbed to 60 from 58, topping the forecast for a rise to 59.
To compile the index, the NAHB surveys its members for how they rate the current sale of new homes, as well as their outlook for sales and buyer traffic.
Members across the country reported higher traffic and more committed buyers.
“Rising home sales, an improving economy and the fact that the HMI gauge measuring future sales expectations is running at an eight-month high are all positive factors indicating that the housing market should continue to move forward in the second half of 2016,” said Robert Dietz, NAHB chief economist.
The components gauging current sales, sales expectations and buyer traffic all rose.