Homebuilder confidence in the U.S. has unexpectedly improved in the month of May, the National Association of Home Builders revealed in a report on Monday.
The report said the NAHB/Wells Fargo Housing Market Index rose to 70 in May after pulling back to 68 in April. Economists had expected the index to come in unchanged compared to the previous month.
"This report shows that builders' optimism in the housing market is solidifying, even as they deal with higher building material costs and shortages of lots and labor," said NAHB Chairman Granger MacDonald.
The NAHB said the index charting sales expectations in the next six months jumped to 79 in May from 75 in April, reaching its highest level since June of 2005.
The index gauging current sales conditions also reached a nearly twelve-year high, climbing to 76 in May from 74 in April.
On the other hand, the component measuring buyer traffic edged down to 51 in May from 52 in the previous month.
Tuesday morning, the Commerce Department is scheduled to release a separate report on new residential construction in the month of April.
Housing starts are expected to rise to an annual rate of 1.260 million in April after tumbling to a rate of 1.215 million in March.
by RTT Staff Writer
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