US home builder confidence rose to its strongest level in more than 6-1/2 years in December, reinforcing the view that the housing market is on track for further improvement and will help the US economy. The NAHB/Wells Fargo Housing Market index rose to 47 this month, its highest level since April 2006, from a downwardly revised 45 in November, the National Association of Home Builders said on Tuesday.

Economists polled by Reuters had predicted the index would be 47. The November reading was originally reported at 46. Readings below 50 mean more builders view market conditions as poor than favourable. The index has not been above 50 since April 2006.

An encouraging aspect of the latest figures was the component on current single-family home sales, which rose to 51 points from 49 in November. The report's sub-index on prospective buyers edged up to 36 from 35, while its sub-reading on sales over the next six months dipped to 51 from a revised 52 in November.

Copyright Reuters, 2012