Home builder confidence soars to 7-year high

Any reading over 50 indicates that more builders view conditions as good rather than poor.

Still, there are lingering concerns about what steps Congress will take to shore up the housing finance system and whether tax reform will affect the mortgage interest deduction.

“Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten,” said David Crowe, the NAHB chief economist. 

“Meanwhile, as the infrastructure that supplies home building returns, some previously skyrocketing building material costs have begun to soften.”

Another positive from the index were the gains in all three indexes and across all four of the nation’s regions. 

The component gauging current sales conditions rose 5 points to 60, its highest level since early 2006. 

Meanwhile, the component gauging sales expectations in the next six months gained 7 points to 67 and while the gauge of traffic of prospective buyers rose 5 points to 45 — the strongest readings for each since late 2005.

All four regions also posted index gains, which are based on three-month moving averages. 

The Northeast showed a 4-point gain to 40, the Midwest was up 8 points to 54, the South posted a 5-point gain to 50 and the West was up 3 points to 51.