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Sentiment rose as labor market conditions
improved, according to the National Association of Home Builders
data. The NAHB/Wells Fargo Housing Market index rose to 55 in
August from 53 in July, the group said in a statement. It was
the third straight monthly gain, and topped the mean estimate of
analysts polled by Reuters for a reading of 53.
Following the data, the PHLX Housing index <.HGX> rose 1.5
percent, more than twice the advance of the S&P 500's <.SPX> 0.7
percent rise. PulteGroup Inc <PHM.N> was one of the S&P's
biggest percentage gainers, up 2.3 percent to $18.69.
Among other names, D.R. Horton Inc <DHI.N> rose 1.8 percent to
$21.21, Toll Brothers <TOL.N> gained 2.1 percent to $34.69 and
Beazer Homes <BZH.N> added 2.7 percent to $17.77. The SPDR S&P
Homebuilders exchange-traded fund <XHB.P> rose 1.7 percent to
$21.12.
The U.S. dollar index <.DXY> rose 0.2 percent, with gains
accelerating after the data was released.
Readings below 50 mean more builders view market conditions as
poor than favorable.
"Each of the three components of the HMI registered consecutive
gains for the past three months, which is a positive sign that
builder confidence appears to be firming following an uneven
spring," said NAHB Chief Economist David Crowe. "Factors
contributing to this rise include sustained job growth,
historically low mortgage rates and affordable home prices,
which are helping to unleash pent-up demand."
The single-family home sales component rose to 58 from a revised
56 and was also the highest reading since January. The gauge of
single-family sales expectations for the next six months rose to
65, the highest since August 2013, while prospective buyer
traffic rose from 39 to 42, the highest since December.
(Reporting by Ryan Vlastelica; Editing by Meredith Mazzilli)
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