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. ($9.27 0%) 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 ($24.26 0%) managed to rise more than 1.5% while other gainers included PulteGroup [stock PHM]; KB Home ($22.02 0%); and Hovnanian ($6.37 0%).
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.