NEW YORK (Reuters) - U.S. homebuilder sentiment rose in November, rebounding from its biggest drop since February in the prior month as builders’ notions of the strength of housing market improved, the National Association of Home Builders said on Tuesday.
The NAHB/Wells Fargo Housing Market index advanced to 58 in November from 54 in October, the group said in a statement. The increase topped the median estimate of analysts polled by Reuters for a reading of 55.
November marked the fifth straight month with a reading above 50, which marks the threshold where more builders view market conditions as favorable than poor.
“Low interest rates, affordable home prices and solid job creation are contributing to a steady housing recovery,” said NAHB Chief Economist David Crowe. “After a slow start to the year, the HMI has remained above the 50-point benchmark for five consecutive months, and we expect the momentum to continue into 2015.”
The single-family home sales component increased to 62 from 57, and the gauge of single-family sales expectations for the next six months climbed to 66 from 64. Prospective buyer traffic rose to 45 from 41.
Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama