(RTTNews) - Homebuilder confidence in the U.S. climbed to another new record high in the month of October, according to a report released by the National Association of Home Builders on Monday.
The report said the NAHB/Wells Fargo Housing Market Index rose to 85 in October from 83 in September. Economists had expected the index to come in unchanged.
"Traffic remains high and record-low interest rates are keeping demand strong as the concept of 'home' has taken on renewed importance for work, study and other purposes in the Covid era," said NAHB Chairman Chuck Fowke.
He added, "However, it is becoming increasingly challenging to build affordable homes as shortages of lots, labor, lumber and other key building materials are lengthening construction times."
The unexpected increase by the housing market index came as all the HMI indices posted or matched their highest readings ever.
The index gauging current sales conditions rose two points to 90, the component measuring sales expectations in the next six months increased three points to 88 and the measure charting traffic of prospective buyers held steady at 74.
On Tuesday, the Commerce Department is scheduled to release its report on new residential construction in the month of September.