Confidence among home builders rose this month for the first time in seven months on expectations that the government's takeover of Fannie Mae and Freddie Mac will help lower rates and revive sales.

The National Association of Home Builders/Wells Fargo index of builder confidence increased to 18, from a record low of 16 last month, the trade group said Tuesday. A reading of less than 50 means most respondents view conditions as poor.

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