Homebuilder confidence rose in November

Homebuilder confidence rose in November as consumers' outlooks brighten amid more job creation and an improving economy.  

Builder confidence in the market for newly built single-family homes rose 4 points to 58, the fifth straight month above 50, on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released Tuesday.

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"Growing confidence among consumers is what's fueling this optimism among builders," said NAHB Chairman Kevin Kelly, a homebuilder and developer from Wilmington, Del.

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

Last week, a consumer sentiment index hit its highest level since July 2007 on better job prospects and falling gasoline prices.

All three index components increased in November.

The index gauging current sales conditions rose 5 points to 62, while the index measuring expectations for future sales moved up 2 points to 66 and the index measuring traffic of prospective buyers increased 4 points to 45. 

"Low interest rates, affordable home prices and solid job creation are contributing to a steady housing recovery," said David Crowe, NAHB's chief economist.

"After a slow start to the year, the HMI has remained above the 50-point benchmark for five consecutive months, and we expect the momentum to continue into 2015."

Regionally, the index rose 3 points in the Northeast to 44, the South posted a 4-point gain to 62 and the West edged up one point to 58.

The Midwest registered a 2-point loss, falling to 57.