US homebuilder confidence rebounded in November

US homebuilder confidence rebounded in November, with low interest rates and more people finding work boosting sales.

The National Association of Home Builders/Wells Fargo builder sentiment gauge gained 4 points from October, up to 58 in November – the second highest level since 2005.

A Bloomberg survey revealed that the median forecast expected the index to increase to 55.

With mortgage rates at around 4 percent and unemployment at its lowest point in six years Americans are more confident than they have been in years about entering the home market.

NAHB Chairman Kevin Kelly, a homebuilder and developer from Wilmington, Delaware, said in a statement:

“Growing confidence among consumers is what’s fueling this optimism among builders,”

Adding:

“Members in many areas of the country continue to see increasing buyer traffic and signed contracts.”

A reading higher than 50 means that there the market conditions are considered to be good.

According to the National Association of Home Builders:

“All three HMI components increased in November. The index gauging current sales conditions rose five points to 62, while the index measuring expectations for future sales moved up two points to 66 and the index gauging traffic of prospective buyers increased four points to 45.”

Geographically homebuilder confidence differed, with the three-month moving averages for regional HMI scores showing that the Northeast rose three points to 44, the South was up four points to 62, the West gained one point to 58, while the Midwest posted a two point loss to 57.