Builder confidence rises in August

The National Association of Home Builders' Housing Market Index rose to 66, up 1 point from July

Builder confidence for newly built single-family homes rose to 66 in August, up one point from July, according to data released Thursday by the National Association of Home Builders (NAHB) and Wells Fargo.

The Housing Market Index (HMI) is a weighted average of separate indices for three single-family data points. It asks respondents to rate the market conditions for the sale of new homes at present and in the next six months, as well as the traffic of prospective buyers of new homes. It falls in a range of 0-100.

The rise, for the second month in a row, follows six months of steady builder confidence in the market. The index measuring current sales conditions rose two points, to 73. Sales expectations over the next six months fell one point, to 70, while buyer traffic rose two points, to 50. Scores above 50 are considered positive.

The same strong confidence appears to be holding up nationwide, although the South experienced no positive or negative changes in confidence.

Email Veronika Bondarenko