According to the National Association of Home Builders (NAHB)/Wells Fargo’s Housing Market Index (HMI), confidence among U.S. homebuilders for newly built single-family homes jumped to 41 in September from 39 in the previous month.

Homebuilder stocks are having a banner year, outpacing the broader market on a wave of optimism that mortgage rates will fall and juice home sales.

By Pratyush Thakur (Reuters) -Shares of major U.S. homebuilders rose in early trading on Thursday as the Federal Reserve's rate-cut cycle is expected to ease pressure on mortgage rates, driving demand for new homes.