Home Builder Confidence Rises to Highest in a Year Published: Monday, 17 Aug 2009 | 1:26 PM ET Text Size By: CNBC.com with wires Home builder confidence rose in August to its highest level in more than a year, according to the latest reading of the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
The Washington-based trade association said Monday the index rose one point to 18, a level not seen since June 2008.
The reading for current sales conditions was unchanged at 16, while traffic by prospective buyers rose three points to 16. The index for expected sales over the next six months jumped four points to 30, signaling that builders think the worst of the housing slump is over.
The report reflects a survey of 474 residential developers nationwide.
Aug. 18 (Bloomberg) -- Treasuries fell, sending 10-year notes down for the first time in four days, before a government report that economists said will show U.S. builders broke ground on homes at the fastest pace in eight months.
Yields climbed from the lowest level in almost four weeks as a Bloomberg News survey of economists showed housing starts rose 2.7 percent to an annual rate of 598,000. The U.S. recession is ending “right now,” said Abby Joseph Cohen, a senior investment strategist at Goldman Sachs Group Inc.
“Yields will rebound,” said Takashi Yamamoto, chief trader in Singapore at Mitsubishi UFJ Trust & Banking Corp., part of Japan’s biggest bank. “The U.S. economy is on the way to recovery, slowly.”
The yield on the 10-year note rose two basis points to 3.49 percent as of 9:50 a.m. in Tokyo, according to BGCantor Market Data. The 3.625 percent security maturing in August 2019 fell 6/32, or $1.88 per $1,000 face amount, to 101 3/32.
Yields will climb to 3.79 percent by year-end, according to a Bloomberg survey of banks and securities companies, with the most recent forecasts given the heaviest weightings.
“The economy is on the mend,” Cohen said yesterday in an interview with Bloomberg Radio. “Profit growth will be more substantial going forward.”