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.

Key Takeaways Homebuilders shares rose after the Fed announced a 50 basis point interest rate cut Wednesday. Bank of America increased its price target for seven hombuilders by an average of 11%. Lennar will report earnings after the bell Thursday,