FX.co ★ U.S. Homebuilder Confidence Improves To Six-Month High In February

The confidence of homebuilders in the U.S. has seen a steady rise for the third consecutive month of February, as stated in a report published by the National Association of Home Builders on Thursday.

According to the report, the NAHB/Wells Fargo Housing Market Index escalated to 48 in February, from its previous 44 in January, outperforming the economist's prediction of an increase to 46.

With this unexpected growth, the housing market index has soared to its highest peak, since its previous high of 50 in August last year.

"The interest and enthusiasm of potential homebuyers are on the rise, as even slightest reductions in interest rates yield a significantly positive effect," said NAHB Chairman Alicia Huey. She further added, "Although the mortgage rates are beyond the reach of several prospective buyers, we anticipate an increase in the number of buyers due to pent-up demand, given the rates continue on a downward trend this year."

The housing market index registered a larger than expected jump due to all three of its main component indices posting growth figures.

The current sales conditions index and the prospective buyer traffic component both witnessed an upward climb of four points, attaining 52 and 33 respectively. Both metrics achieved their highest recorded figures since August.

Additionally, the component evaluating the sales expectations for the upcoming six months also augmented by three points to 60, accomplishing its highest figure since June last year.

The Commerce Department plans to publish its report on new residential construction for January on Friday. The communique expects housing starts to rise to an annual rate of 1.470 million in January from 1.460 million in December while also projecting building permits to increase to an annual rate of 1.510 million in January from 1.495 million in December.