The Dow Jones Industrial Average index rallied 207.65 points, or 1.65% to 12,795.96 while the S&P500 index leapt 27.07 points to close at 1,386.89.
US homebuilders’ confidence rose for a seventh straight month last November. According to the National Association of Home Builders (NAHB), its housing market index climbed five points to 46, beating market estimates of 41.
This was the strongest level since May 2006, and also much higher than the 41 figure last October.
NAHB Chairman Barry Rutenberg stated that many potential buyers who were ‘on the fence’ were now motivated to move forward with a purchase so as to take advantage of today’s more favorable prices and interest rates.
Moreover, demand was increasing for new homes as inventories of foreclosed and distressed properties shrank.