Homebuilder sentiment rises more than expected

Homebuilder sentiment improved in August, according to a monthly index from the National Association of Homebuilders.

The housing market index came in at 60, as expected, and up from a one-point downward revision to 58 in July.

The index measures how builders rate current and future market conditions for new home sales.

There were improvements in two of the three index components - current and future sales. The gauge of buyer traffic slipped one point.

"Builder confidence remains solid in the aftermath of weak GDP reports that were offset by positive job growth in July," said NAHB Chief Economist Robert Dietz in the release.

"Historically low mortgage rates, increased household formations and a firming labor market will help keep housing on an upward path during the rest of the year."

The NAHB in July said members reported softness in some markets because of regulatory hindrances, scarce lots, and labor shortages.

More to come ...