Americans are making more money, and that is making the nation's homebuilders feel a lot better about their business.
A monthly survey of builder confidence jumped a striking six points in September to the highest level in nearly a year. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) hit 65; anything above 50 is considered positive sentiment. August's reading was revised down one point. The index stood at 61 one year ago.
"As household incomes rise, builders in many markets across the nation are reporting they are seeing more serious buyers, a positive sign that the housing market continues to move forward," said NAHB Chairman Ed Brady, a homebuilder and developer from Bloomington, Ilinois. "The single-family market continues to make gradual gains and we expect this upward momentum will build throughout the remainder of the year and into 2017."