Home builder sentiment jumps 5 points to 59 in June according to the national home builders Wells Fargo index which is a big beat. The street was looking for 2 points. We get a 5 point gain to 59, 50 is the line between positive and negative and this is the highest level since September 2014. Last June we were at 49 that was we're in negative territory now up to 59.
The builders saying that today's buyers are quote "serious and committed" of the 3 components of this index. The current sales is up 7 points to 65 sales expectations up 6 points to 69. That is the highest level since 2009 builder expectations. Buyer traffic up 5 points but still at 44 it is the only component of the index still in negative territory. Going regionally in the south and north east both saw 3 point gains to 60 and 44 respectfully.
The West saw a gain of 2 points to 57. The Midwest saw a drop of 1 point on the sentiment index to 54. But again nationally overall that jumped to 59 a big beat for the builders who are clearly seeing things going better into the summer season. This after we saw new home sales and housing starts jump in April and tomorrow we can see the latest numbers for May housing starts and we are expecting to see a gain there as well.