US Builder sentiments rise to 57

US Builder sentiments rise to 57U. S. homebuilders have indicated that they are increasingly optimistic about strengthening sales in the housing markets.

The National Association of Home Builders and Wells Fargo builder sentiment index increased to 57 during the month compared to 51 in June recording its third monthly gain. High sentiment indicates that the builders are expecting high sales and would increase construction of homes in the country. A rating of more than 50 on the index indicates that more number of homebuilders expect good sales conditions.

The rating of 57 on the index is the highest recorded since January 2006, much before the collapse of the housing market in the US. The measures for customer traffic, current sales conditions and builders' outlook for single-family home sales during the next six months rose to their highest level in seven years.

David Crowe, the chief economist at the National Association of Home Builders said, "Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten."

The index has been prepared following responses from 281 builders in the country and indicates that the housing market will continue its growth in the coming months.