U.S. Homebuilder Confidence Unexpectedly Continues To Improve In November

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Reflecting low existing inventories and strong buyer demand, the National Association of Home Builders released a report on Tuesday unexpectedly showing a continued improvement in U.S. homebuilder confidence in the month of November.

The report showed the NAHB/Wells Fargo Housing Market Index rose for the third straight month, climbing to 83 in November from 80 in October. The increase surprised economists, who had expected the index to come in unchanged.

"The solid market for home building continued in November despite ongoing supply-side challenges," said NAHB Chairman Chuck Fowke.

He added, "Lack of resale inventory combined with strong consumer demand continues to boost single-family home building."

The unexpected increase by the headline index came as the index gauging current sales conditions rose to 89 in November from 86 in October.

The gauge charting traffic of prospective buyers also climbed to 68 in November from 65 in October, while the component measuring sales expectations in the next six months held steady at 84.

On Wednesday, the Commerce Department is scheduled to release a separate report on new residential construction in the month of October.

Housing starts are expected to jump by 1.6 percent to an annual rate of 1.580 million, while building permits are expected to spike by 3.2 percent to an annual rate of 1.640 million.

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