U.S. Homebuilder Sentiment Rises to Seven-Month High in May

(Bloomberg) -- Sentiment among U.S. homebuilders increased in May by more than expected, sustaining this year’s upward swing on stronger sales and lower mortgage rates.

The National Association of Home Builders/Wells Fargo Housing Market Index rose to 66, the highest level since October as all three main measures increased, according to a report Wednesday. Readings above 50 indicate more builders view conditions as good than poor.

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Official’s View

“Builders are busy catching up after a wet winter and many characterize sales as solid, driven by improved demand and ongoing low overall supply,” NAHB Chairman Greg Ugalde, a home builder and developer in Connecticut, said in a statement. “However, affordability challenges persist and remain a big impediment to stronger sales.”

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• The Washington-based trade association represents more than 140,000 members in areas ranging from building and remodeling to housing finance.
• Economists in a Bloomberg survey had projected the main housing sentiment index would rise to 64 from 63.

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