US Home Builders Remain Confident

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Home builder confidence in the U.S. increased by three points in August, the fourth consecutive monthly increase, according to the latest numbers from the National Association of Home Builders. 

The index for newly built, single-family homes reached 59 in August, a month after reporting a seven-year high. 

"Builders are seeing more motivated buyers...than they have in quite some time," NAHB Chairman Rick Judson, said in a release. "What's more, firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market."

An increase in demand for new and existing homes in most local markets continues to drive builder confidence. However, the positive trend could begin to ease. 

"This positive momentum is being slowed by the ongoing headwinds of tight credit and low supplies of finished lots and labor." NAHB Chief Economist David Crowe said.

Two of the HMI's three components, measuring current sales and sales expectations reported gains for August. The component gauging prospective buyers remained unchanged at 45. 

All regions reported increases in the three-month HMI averages, with only the Northwest remaining the same.