Washington, DC, Sept. 18, 2012 -- Home builder optimism rose in September for the fifth straight month to reach the highest level in more than six years, according to the National Association of Home Builders/Wells Fargo housing market index.
The index gained three points to a seasonally adjusted reading of 40, the highest the index has been since June 2006. Economists had anticipated a reading of 38.
A 50 reading indicates “good” conditions. The index hit a low of 8 during the recession and didn’t break 20 until December 2011.
Gains were made for each of the three components. Present sales rose 4 points to 42, sales for the next six months jumped 8 points to 51, while traffic of prospective buyers edged up 1 point to 31.