NAHB home builder gauge climbs to 4.5-year high

WASHINGTON (MarketWatch) -- A measure of builder confidence in the market for newly built single-family homes climbed in January to the highest level since June 2007, according to the National Association of Home Builders/Wells Fargo housing market index released Wednesday. The gauge rose 4 points to 25, the fourth consecutive rise. Economists polled by MarketWatch had expected only a 1-point improvement to 22. NAHB Chief Economist David Crowe attributed the gains to improvements in employment and consumer confidence. The seasonally adjusted index, which correlates closely with single-family housing starts, is designed so that readings over 50 are considered "good," which hasn't been the case since April 2006.