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Today, the National Association of Home Builders (NAHB) released its latest Housing Market Index (HMI), showing that assessments of housing activity improved in December. The composite HMI index climbed to 58, while the buyer traffic index rose to a level of 44. It's important to note that while the last few months results have suggested a pullback of sorts for homebuilder activity, the latest trend has been very strong and consistent with the overall recovery seen in the nation's housing markets. Looking at the data it's fairly clear that the last year of results indicate a major change in builder sentiment, likely coming as a result of improvements in confidence given the notable rise in buyer traffic, reduced inventory, and a more balanced monthly supply.

Source: Homebuilder Blues: NAHB/Wells Fargo Homebuilder Ratings - December 2013