You think the looming possibility of a taper at this week's Fed meeting has homebuilders concerned? Think again. In this morning's December report on homebuilder confidence from the NAHB, the headline reading jumped four points to 58 from November's reading of 54. Today's stronger than expected report (estimate was 55) also brought the headline reading back to its post-recession high that was reached in August.
The table above breaks down the December NAHB confidence report on a regional basis as well as present and future sales and traffic. Charts of each component are also provided below. As shown, every component increased this month with the strongest gains coming from present sales, which moved up to its highest level since December 2005. The Northeast was the only region where confidence declined this month, but all you have to do is look out the window up here to see why there is not much activity on the housing front right now. While the Northeast was weak, confidence in the South rose to its highest level since February 2006.