As a federal credit for first-time homebuyers nears its end, those who use construction equipment to build homes are feeling more confident about their industry.
According to the National Association of Home Builders/Wells Fargo Housing Market Index, home builder confidence increased by 4 points to reach 19 in April, which is the highest level reported since September 2009. The HMI measures how confident builders are in the market for new single-family homes.
"While we remain cautious about what future months will bring, it's great to have this positive momentum at the start of the spring home-buying season," said Bob Jones, NAHB president.
The increase in confidence was tied to the $8,000 first-time homebuyers tax credit, which is set to expire on April 30. As a result, many consumers may be rushing to purchase new homes in order to get in under the deadline.
Though homebuilders were generally more positive in April, confidence in general is far from outweighing negativity in the market. A number over 50 on the HBI indicates that more builders were confident than were not, and April's 19 is a far cry from that.