Confidence among builders in the U.S. housing market increased more than expected in April as declining mortgage rates and low inventory helped drive demand higher for new homes.

The National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, rose one point to 45, the highest reading since September.

Any reading above 50 is considered positive; prior to 2022, the gauge has not entered negative territory since 2012, excluding a brief – but steep – drop in May 2020. 

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