U.S. homebuilders are feeling more optimistic about the housing market, lifting their confidence this month to the highest level in 10 years.
The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose this month to 64, up from 61 in September. The last time the reading was higher was October 2005 at 68.
Readings above 50 indicate more builders view sales conditions as good rather than poor. The index has been consistently above 50 since July last year.
Builders' improved optimism bodes well for a pickup in new home construction, which could help give the U.S. economy a boost. The supply of new homes has been scarce, so greater construction could result in more sales.
The latest builder index reflects a gradual, but consistent strengthening in the market for new homes, said David Crowe, the NAHB's chief economist.
"With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015," he said.
Builders' view of current sales conditions and their outlook for sales over the next six months surged. A measure of traffic by prospective buyers held steady.
See Tuesday's Arkansas Democrat-Gazette for full details.