WASHINGTON (dpa-AFX) - The National Association of Home Builders released a report on Monday showing homebuilder confidence in the U.S. has improved by much more than expected in the month of June.
The report said the NAHB/Wells Fargo Housing Market Index jumped to 55 in June from 50 in May. Economists had expected the index to inch up to 51.
The housing market index increased for the sixth straight month, climbing above the midpoint of 50 for the first time since July 2022.
'Builders are feeling cautiously optimistic about market conditions given low levels of existing home inventory and ongoing gradual improvements for supply chains,' said NAHB Chairman Alicia Huey.
She added, 'However, access for builder and developer loans has become more difficult to obtain over the last year, which will ultimately result in lower lot supplies as the industry tries to expand off cycle lows.'
The bigger than expected increase by the housing market index reflected continued advances by all three component indices.
The NAHB said the index gauging current sales conditions jumped five points to 61, the component charting sales expectations in the next six months surged six points to 62 and the gauge measuring traffic of prospective buyers rose four points to 37.
On Tuesday, the Commerce Department is scheduled to release a separate report on new residential construction in the month of May.
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