Homebuilder stocks soared Monday – edging up as high as 4% in some cases – after the National Association of Home Builders/Wells Fargo Housing Market Index was released, showing homebuilder confidence at a seven-year high.
Standard Pacific Corp. (SPF) maintained a positive trajectory throughout the day, with the builder’s stock rising as high as 4% in Monday trading and ending the day up by more than 3%.
Fort Worth-based builder DR Horton (DHI) managed to rise more than 1.5% while other gainers included PulteGroup ; and Hovnanian (HOV).
The NAHB/Wells Fargo Index put homebuilder confidence in June at an index score of 52 for single-family homes, an eight-point increase from the last report and well above the 50-mark that generally signifies a market where most builders are confident about sales conditions.
The last time builders reached an index score above 50 was April 2006 right before the housing market crash.
