The National Association of Home Builders, or NAHB, said its index measuring builder confidence in the U.S. market for newly built single-family homes rose to 68 in October after declining to 64 last month amid concerns over the impact of recent hurricanes.
All three components of the NAHB/Wells Fargo housing market index posted gains in October, with both the sales conditions and sales expectations components increasing by five points to 75 and 78, respectively. The buyer traffic component ticked up by one point to 48.
"This month's report shows that home builders are rebounding from the initial shock of the hurricanes," said NAHB Chairman Granger MacDonald, who also cautioned about the long-term effects of the hurricanes such as "intensified" material price hikes and labor shortages.
MacDonald said the new home market would continue improving at a modest rate in the months ahead due to tight inventory of existing homes and promising growth in household formation.