US house builder confidence hits highest level since 2005

House builder confidence rose to its highest level in a decade in October, data released on Monday showed.

The National Association of Home Builders/Wells Fargo housing market index climbed three points to 64, its highest level since October 2005 and higher than analysts’ expectation for a 62 reading.

The sub-index tracking sales expectations in the next six months rose from 68 to 75, while the gauge of current sales conditions climbed from 67 to 70, the report added.

Any reading above 50 indicates house builders are positive about the market conditions.

"The September reading suggests robust sentiment among home builders and bodes well for our expectation of further improvement in housing activity during the second half of 2015," said analysts at Barclays.