After disappointing Empire Manufacturing, Industrial Production, and Capacity Utilization reports to start the week off, the National Association of Home Builders sentiment index saw its largest monthly increase since July 2013, rising from 54 to 59. That reading of 59 was tied for the highest reading of the expansion and also considerably better than consensus expectations for a level of 56. As shown in the table to the right, every component of the sentiment index increased this month as did sentiment in every region of the country.
The charts below the historical readings of the NAHB Home Builder survey and each of its components going back to 1985. While the headline sentiment index is on the verge of breaking out to post-recession highs, both Present and Future sales both broke out to their highest levels since late 2005. We have been on the housing bandwagon for the better part of a year now, and it appears as though home builders are starting to turn increasingly positive as well.