Homebuilder sentiment reversed a three-month slide in April and rose to its best monthly showing of 2015, the National Association of Home Builders said on Wednesday.
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The NAHB/Wells Fargo Housing Market index increased to a preliminary 56 from a revised 52 in March, the group said in a statement. Economists polled by Reuters had predicted the index would rise to 55.
Readings above 50 mean more builders of new single-family homes see market conditions as favorable than poor. The index has not been below 50 since June 2014 and stood at 46 during April 2014.
“This uptick shows builders are feeling optimistic that the housing market will continue to strengthen throughout 2015,” NAHB Chief Economist David Crowe said in a statement.
The single-family home sales component rose to a preliminary 61 from 58 in March. The gauge of single-family sales expectations for the next six months increased to a preliminary 64 from 59 last month, while prospective buyer traffic rose to a preliminary 41 from 37 in March.