Homebuilder sentiment hits highest mark since ’99

WASHINGTON — U.S. homebuilders are feeling more optimistic than they have in nearly two decades.

The National Association of Home Builders/Wells Fargo builder sentiment index released last week rose five points to 74 this month. That’s the highest reading since July of 1999, more than 18 years ago.

Readings above 50 indicate more builders see sales conditions as good rather than poor. The index has remained above 60 since September of 2016.

All three components of the index rose in December. The reading gauging builders’ view of single-family home sales rose four points to 81, while the outlook for sales over the next six months ticked up three points to 79. The measure of traffic by prospective buyers jumped eight points to 58.

The Commerce Department reported late last month that Americans bought new homes in October at the fastest pace in a decade — a 6.2 percent monthly increase — reflecting a strong economy but also a worsening shortage of existing homes for sale.

New home sales last month rose to a seasonally adjusted annual rate of 685,000, the third straight monthly gain and the best sales clip since October 2007.