The National Association of Home Builders (NAHB)/Wells Fargo housing market index for October increased by three points from a prior reading of 61 in September to 64, the highest reading since the end of the housing boom in late 2005. The reading was higher than the consensus forecast of 62 from a Bloomberg survey of economists.

An index reading above 50 indicates that more builders view sales conditions as good than view them as poor.

The current sales conditions sub-index added three points in October to reach 70, and the sub-index that estimates prospective buyer traffic remained unchanged at 47. The sales expectations sub-index rose seven points from 68 to 75.

NAHB’s chief economist said:

With October’s three-point uptick, builder confidence has been holding steady or increasing for five straight months. This upward momentum shows that our industry is strengthening at a gradual but consistent pace. With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015.

In the NAHB’s regions, the three-month moving average index rose in all four. In the South the index rose from 64 to 65 in October, and by a like amount to 60 in the Midwest and to 47 in the Northeast. The moving averaged jumped five points in the West to 69.

The current average interest rate for a conventional 30-year fixed mortgage loan is 3.83%, according to Mortgage News Daily. The 52-week range for conventional 30-year fixed loans is 3.55% to 4.26%.

The NAHB/Wells Fargo housing market index has remained in the 60-point range since June. Prior to mid-2013, the index had not risen to 50 since mid-2006.

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