US homebuilder confidence continues to recover in October, NAHB says

Homebuilders in the US were in a buoyant mood last month, extending their bounce from the weakness seen a the tail-end of 2018, thanks in large part to an improved outlook for sales.

The National Association of Homebuilers'/Wells Fargo Housing Market Index rose by three points in October to reach 71.0 (consensus: 68.0) - its strongest level since February 2018.

The business lobby group attributed the improvement to low interest rates on mortgages, solid job growth and a decline in the inventory of new homes.

"However, builders continue to remain cautious due to ongoing supply side constraints and concerns about a slowing economy," NAHB said in a statement.

The monthly survey canvasses homebuilders for their views on the current pace of single-family homes, traffic of prospective buyers, and on their outlook for the following six months.

Of those subindices, the first increased by three points to 78.0, the second by six points to 76.0 and the last by four points to 54.0.

Looking at the past three months, the biggest increases in HMI scores were seen in the South where it rose by three points to 73.0 and in the West, which experience a similar jump to 78.0.