Home building confidence at 20-year high, index shows

Dec. 16 (UPI) -- Home builders in the United States are more confident about their industry than they have been in two decades, an analysis said Monday.

The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) has climbed this month to 76 points -- its highest measure since June 1999. The confidence figure last month was 71, the analysis said.

Monday's mark is an increase of 20 points over last December. Anything higher than 50 in the index is considered a positive outlook.

"Builders are continuing to see the housing rebound that began in the spring, supported by a low supply of existing homes, low mortgage rates and a strong labor market," NAHB Chairman Greg Ugalde said in a statement.

Experts say a healthy U.S. economy and a lack of available housing in the United States are key contributors to the HMI.

"We are still underbuilding due to supply-side constraints like labor and land availability," NAHB Chief Economist Robert Dietz said. "Higher development costs are hurting affordability and dampening more robust construction growth."