Dive Brief:

• The National Association of Home Builders/Wells Fargo housing market index grew by 3 points to 64, marking its highest level since October of 2005 — at the end of the housing boom. 
• Only one of the three HMI components failed to post an October gain. Sales expectations in the next six months rose seven points to 75, and current sales conditions increased three points to 70. The buyer traffic index held steady at 47.
• For regional HMI scores, all four grew. The West increased by five points to 69 and the Northeast, Midwest and South rose by a point to 47, 60 and 65, respectively.

Dive Insight:

"The fact that builder confidence has held in the 60s since June is proof that the single-family housing market is making lasting gains as more serious buyers come forward," said NAHB Chairman Tom Woods, a home builder from Blue Springs, MO. "However, our members continue to tell us there are still pockets of softness in some markets across the nation, and that they face challenges regarding the availability of lots and labor."

This if the first in a string of housing market reports that could have an impact on the Fed's coming rate hike decision.

"This upward momentum shows that our industry is strengthening at a gradual but consistent pace," said NAHB Chief Economist David Crowe.