Home Builder Confidence Jumps To Six Year High

Joplin Missouri Sky Home House Building Construction
Jeremy Nelson rebuilds his home after it was destroyed when a tornado hit in Joplin, Missouri.

[credit provider=”Joe Raedle/Getty Images”]

UPDATE:A key indicator of home builder confidence rebounded to its highest level since June 2006, new data from the National Association of Home Builders shows.

The headline Housing Market Index jumped to 40 in September, above expectations for a print of 38.

“This fifth consecutive month of improvement in builder confidence provides further assurance that the housing market is moving in a positive direction, but there’s still a long way to go on the road to recovery and several obstacles are slowing our progress,” NAHB Chairman Barry Rutenberg said.

All three pieces that feed into the index increased during the month, including prospective buyer traffic and sales prospects.

Regionally, the Midwest and West logged the strongest gains, although all areas of the country posted improvements.

Below, a look at the NAHB index to new home sales (courtesy of Reuters’ Scott Barber).

NAHB Home Index

[credit provider=”Reuters” url=”http://fingfx.thomsonreuters.com/2012/03/19/1317549751.htm”]


Minutes away from the final major data point of the day: the National Association of Home Builders’ Housing Market Index.

Economists surveyed by Bloomberg forecast the headline index will improve 1 point to 38 in September, the highest reading since February 2007.

The announcement is set for 10:00 a.m.