Confidence Among Homebuilders Remains Near 2016 High

Confidence among homebuilders in November remained near the highest level this year, a sign of strength in the residential real estate market, according to the National Association of Home Builders/Wells Fargo.

The builder sentiment gauge held at 63 (matching the forecast); readings below 50 mean more respondents report poor market conditions. The index of prospective buyer traffic rose to 47 from 46, while the measure of six-month sales outlook decreased to 69 from 71. The gauge of current sales was unchanged at 69.

The outlook is being driven by demand as employers continue hiring at a steady pace and wage gains pick up. At the same time, shortages of available lots and skilled labor, along with a jump in mortgage rates following the bond markets' reaction to Donald Trump's election, could restrain sentiment in the coming months. Most homebuilders submitted their survey responses prior to the election.

"Ongoing job creation, rising incomes and attractive mortgage rates are supporting demand in the single-family housing sector," NAHB Chief Economist Robert Dietz said in a statement. "This will help keep housing on a steady, upward glide path in the months ahead."

Builder confidence gained in three of four regions. Sentiment climbed in the Northeast, Midwest and West, while it was unchanged in the South. Confidence matched a 2016 high in the Northeast.