Homebuilder confidence in the U.S. has unexpectedly seen a modest improvement in the month of November, according to a report released by the National Association of Home Builders on Tuesday.
The report said the NAHB/Wells Fargo Housing Market Index crept up to 38 in November after jumping to 37 in October.
While a reading below 50 still signifies less optimism among builders, the uptick surprised economists, who had expected the index to come in unchanged.
The unexpected uptick by the headline index came as the index gauging current sales conditions increased to 41 in November from 39 in October.
The gauge charting traffic of prospective buyers also inched up to 26 in November from 25 in October, although the index measuring future sales fell to 51 in November from 54 in October.
The NAHB said the latest HMI survey also revealed that 41 percent of builders reported cutting prices in November, a record high in the post-Covid period.
The average price reduction was 6 percent in November, unchanged from October, the NAHB said, while the use of sales incentives was 65 percent in November, tying the share in September and October.