Homebuilder Sentiment Ends Three-Month Slide In April

Homebuilder sentiment ended it three-month slide in April, rising to its highest monthly reading in 2015, though the bar wasn’t set very high historically speaking. The National Association of Home Builders said on Wednesday the NAHB/Wells Fargo Housing Market index increased to a preliminary 56 from a revised 52 in March.

Economists polled by Reuters had predicted the index would rise to 55.

“As the spring buying season gets underway, home builders are confident that current low interest rates and continued job growth will draw consumers to the market,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.

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.

“The HMI component index measuring future sales expectations rose five points in April to its highest level of the year,” said NAHB Chief Economist David Crowe. “This uptick shows builders are feeling optimistic that the housing market will continue to strengthen throughout 2015.”

The single-family home sales gauge rose to a preliminary 61 from 58 in March, and 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.