A shortage of existing homes for sale is boosting the market for newly-built homes, and fueling confidence among builders right along with it.
A monthly reading of builder sentiment rose two points to 60 in August; anything above 50 is considered positive on the National Association of Home Builders/Wells Fargo Housing Market Index. July's reading was revised down one point. The index stood at 61 in August of 2015.
"Builder confidence remains solid in the aftermath of weak GDP reports that were offset by positive job growth in July," said NAHB chief economist Robert Dietz. "Historically low mortgage rates, increased household formations, and a firming labor market will help keep housing on an upward path during the rest of the year."