Homebuilder confidence posted to the largest month-over-month gain seen in more than a decade in July.
The confidence level of those constructing single-family homes increased to a mark of 35 out of 100 in July, according to a report from the National Association of Home Builders. This was a six-point gain from a month earlier and the highest number recorded since 2007.
"Combined with the upward movement we've seen in other key housing indicators over the past six months, this report adds to the growing acknowledgement that housing - though still in a fragile stage of recovery - is returning to its more traditional role of leading the economy out of recession," said NAHB chief economist David Crowe.
Meanwhile, builder confidence strengthened in every region of the country, Crowe added. Specifically, the Northeast reported an eight-point gain to 36, while the Midwest rose three points to a score of 34. In addition, the confidence level in the South rose to 32, while the South surged 12 points to the highest level in the country at 44, even though foreclosed houses continue to be an obstacle for markets in the region.