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US homebuilder confidence at 6-year high

US homebuilder confidence at 6-year high

CREATED Oct 16, 2012

LOS ANGELES (AP) -- Confidence among U.S. homebuilders remains at its highest level in six years, reflecting improved optimism over the strengthening housing market this year and a pickup in visits by prospective buyers to builders' communities.

The National Association of Home Builders/Wells Fargo builder sentiment index rose to 41 this month, up from 40 in September. That's the highest reading since June 2006, just before the housing bubble burst.

Any reading below 50 indicates negative sentiment about the housing market. The index hasn't reached that level since April 2006, the peak of the housing boom.

A measure of traffic by prospective buyers rose 5 points to 35, the highest level since April 2006.

The survey is based on responses from 400 builders. It has been trending higher since last October.