The increase was the largest one-month gain the index had seen since the homebuyer tax credit program helped spur the market in April of last year. "This latest boost in builder confidence is a good sign that some pockets of recovery are starting to emerge across the country as extremely favorable interest rates and prices catch consumers' attention," said the NAHB's chief economist David Crowe. "However, it's worth noting that while some builders have shifted their assessment of market conditions from 'poor' to 'fair,' relatively few have shifted their assessments from 'fair' to 'good,'" he added. "One reason is that builders are facing downward pricing pressures from foreclosed homes at the same time that building materials costs are rising, and this is further squeezing already tight margins." The NAHB report notes that the homebuilder confidence index is still below 50; only numbers over 50 indicate that more builders view conditions as good than poor. -- Written by Andrea Tse in New York. >To contact the writer of this article, click here: Andrea Tse.
NEW YORK ( TheStreet) -- Homebuilder confidence jumped four points to a reading of 18 in October, according to the National Association of Home Builders-Wells Fargo Housing Market Index.