Home Builder Sentiment Improves

Washington, DC, Sept. 16, 2008--U.S. home builders grew more confident about their business in early September, with sentiment rising for the first time in seven months, according to the the National Association of Home Builders.

The builders' sentiment index rose to 18 in September, from a record low 16 in August, the National Association of Home Builders said. Still, the index shows that barely one in five builders is optimistic.
 
Economists expected the index to rise to 17 in September. The index peaked at 72 in June 2005. It was at 20 a year ago.
 
Lower mortgage rates, a loan disguised as a tax break for first-time buyers and the government takeover of mortgage giants Fannie Mae and Freddie Mac have encouraged builders to think new-home sales may finally be at a turning point, said Sandy Dunn, president of the builders' group.

All three components of the builders' index improved in September.

The index measuring current single-family sales rose to 17 from 16. The index gauging future sales soared to 30 from 24. The index of prospective buyers rose to 14 from 13.

All four regions posted better scores in September than in August.