NAHB housing market index hits five-month high in October
Sentiment among US housebuilders unexpectedly improved in October, according to data released on Tuesday.
The National Association of Home Builders/Wells Fargo housing market index rose to 68 from 64 the month before, beating expectations for it to remain unchanged and marking the highest reading since May.
The component gauging current sales conditions increased five points to 75 and the index charting sales expectations in the next six months was up five points to 78. Meanwhile, the index for buyer traffic ticked up one point to 48.
Pantheon Macroeconomics chief economist Ian Shepherdson said: "At this point we can't be sure if this is just a rebound from the storm hit in September or the start of a renewed uptrend, perhaps triggered - or supported, at least - by increased demand from people seeking to move from the affected areas to higher ground, or less-hurricane prone areas.
"Either way, the five-point jump in sales expectations, returning the cycle high of 78 - a level last exceeded in 2005 - is startling. It bodes well for home sales and housing construction in Q4 and Q1 next year, though tomorrow's September housing starts data likely will depressed by the storms."