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U.S. Home Builders Confident

Sentiment Among U.S. Home Builders is at its Highest Level Since 2005
Sentiment Among U.S. Home Builders is at its Highest Level Since 2005

A new report shows confidence among U.S. home builders has reached its highest level since late 2005.

The National Association of Home Builders/Wells Fargo builder sentiment index has jumped to 59 this month from 56 in July.

The increase in sentiment marks the fourth consecutive monthly gain.

The index is on a scale of 1 to 100. A reading of 50 means home builders are neutral. Any reading above 50 indicates home builders believe conditions for sales are good.

A combination of improving employment conditions along with increasing home prices and historically low mortgage rates have resulted in a more active real estate market.

New-home sales increased 8.3 percent in June which is the largest increase in five years.