Oct. builder sentiment edges up to six-year high (by Steve Goldstein)

WASHINGTON (MarketWatch) - Builder confidence in October edged higher to mark the sixth gain in a row and the top reading in more than six years, a trade group said Tuesday in the latest indicator of a revival in the housing market. The National Association of Home Builders/Wells Fargo housing market index nudged up 1 point to 41, marking the highest level since June 2006. Economists polled by MarketWatch anticipated a slightly better read of 42. Still, the index - which historically has a very strong correlation with single-family housing starts - has surged from as low as 17 in Oct. 2011, even though it hasn't reached the 50 level indicating more builders than not see good conditions. In October, the component measuring current sales conditions stayed at 42 and the component measuring sales prospects for the next six months stayed at 51. The index measuring traffic of prospective buyers rose 5 points to 35, the highest level since April 2006.