Dive Summary:

• The National Association of Home Builders/Wells Fargo Housing Market Index (HMI), which measures how well builders think the market is doing, got to 40 this month, which is the highest it has been since June 2006.
• The index uses a scale of 0 to 100, with 50 being the point where builders who are surveyed are equally pessimistic or optimistic about the market's near future. It has three components, and the one asking builders to gauge sales prospects for the coming six months stood at 51 for September.
• The NAHB's chief economist, David Crowe, said the results show growing confidence, but a lack of building lots in some markets and rising prices for construction materials are cause for worry about the recovery's strength.

From the article:

Builder confidence in the market for newly built, single-family homes rose for a fifth consecutive month in September to a level of 40 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. ...