A gauge of home-builder sentiment rose to its highest level since November 2005, a sign the U.S. housing market is shaking off worries about the global economy and volatile financial markets.
An index of builder confidence in the market for new single-family homes rose to a seasonally adjusted level of 62 in September, the National Association of Home Builders said Wednesday. A reading over 50 means most builders generally see conditions as positive.
The index stood at 61 in August and 60 in July. Economists surveyed by The Wall Street Journal expected a reading of 61 in September.
The index has been positive since July 2014, following five months in early 2014 when sentiment fell into in negative territory.
"Today's report is consistent with our forecast," said NAHB Chief Economist David Crowe. "Barring any unexpected jolts, we expect housing to keep moving forward at a steady, modest rate through the end of the year."
One possible sticking point on the horizon: a rise in interest rates. On Wednesday the Federal Reserve begins a policy meeting where officials will decide whether to begin raising short-term interest rates, which could make mortgages more expensive. NAHB Chairman Tom Woods also noted that builders are continuing to report concerns about the availability of land and construction workers.
Historically low interest rates and rising rents have made a home purchase more appealing for those who can afford a down payment, but housing prices have also risen in much of the country. Although job growth has been steady over the past five years, wages have stayed relatively flat, making it harder for people to save for a home.