Homebuilder confidence rises - The Business Journal of Milwaukee:

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It is the first back-to-backl increase in builder confidence since Februaryt 2008 and is now at its highest level ineighg months. The index measuring current confidencwe rosetwo points, from 12 in April to 14 in May. Any readingy under 50 still indicates the majority of builderas view conditionsas poor. “The fact that the May [Housing Marke Index] continued to tick up from April’ss 5 point increase provides confirming evidence that the improved confidencs level wasno fluke,” said NAHB chief economist David Crowe.
“This continued increas indicates that home buildersfeel we’re at or near the botto m of the market and that positive signxs lie ahead for builders and potentiapl home buyers, provided that builder access to productiohn credit significantly improves.” A separate index measurinvg expectations for the next six monthas rose three points to 27. Builder and Realtors are hoping lower prices and historicallg low mortgage rates will overcome tighter lending The housing market may also benefit this year froman $8,000 tax creditg for homebuyers. Earlier this month, the reporte d pending sales of existing homesrose 3.
2 percent in the first back-to-back increase in pending salees in a year.