Homebuilder Confidence at Five-Year High

Washington, DC, May 15, 2012 -- Builder confidence in the market for newly built, single-family homes gained five points in May, according to the National Association of Home Builders/Wells Fargo Housing Market Index.

The reading of 29 was the index’s strongest reading since May of 2007.

“Builders in many markets are reporting that buyer traffic and sales have picked back up after a pause this April,” said Barry Rutenberg, chairman of the National Association of Home Builders.

“It seems we have resumed the gradual upward trend in confidence that started at the beginning of this year, as stabilizing prices and excellent affordability encourage more people to pursue a new-home purchase.”

NAHB Chief Economist David Crowes said that the reading is an indication that firming home values, improving employment and low mortgage rates are drawing consumers back.