With homebuilders reporting higher traffic and more committed buyers at their job sites, the National Association of Home Builders released a report on Thursday showing a bigger than expected improvement in homebuilder confidence in the month of June.
The report said the NAHB/Wells Fargo Housing Market Index climbed to 60 in June after holding steady at 58 for four consecutive months. Economists had expected the index to inch up to 59.
The bigger than expected increase lifted the housing market index to its highest level since reaching 61 in January.
The NAHB said the increase by the housing market reflected gains by all three of the components that make up the index.
The index charting sales expectations in the next six months showed a notable increase, jumping to an eight-month high of 70 in June from 65 in May.
The component measuring buyer traffic also climbed to 47 in June from 44 in May, while the component gauging current sales conditions edged up to 64 from 63.
"Rising home sales, an improving economy and the fact that the HMI gauge measuring future sales expectations is running at an eight-month high are all positive factors indicating that the housing market should continue to move forward in the second half of 2016," said NAHB Chief Economist Robert Dietz.
Friday morning, the Commerce Department is scheduled to release a separate report on new residential construction in the month of May.
Housing starts are expected to drop to an annual rate of 1.150 million in May after jumping 6.6 percent to a rate of 1.172 million in April.
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