German international Havertz, signed from Chelsea for 65 million pounds ($82.16 million), struggled for form in the first few months of the season but has scored two goals in his last two games, including an 89th-minute winner against Brentford on Saturday.
"Everything is starting to come together. A lot of the things he was doing right, he's continued to do and now obviously in front of goal, he's being very efficient," Arteta told reporters ahead of Saturday's game at the Emirates Stadium.
"He's been very positive and he's been so influential in a good way to his teammates and the team, but obviously his confidence grows.
"When you feel loved, when you feel respected and when you feel admired, things are much easier. Your energy is better, your body language is better and I think that's the way he’s felt in the last few days."
With Arsenal's closest title rivals Manchester City and Liverpool only playing on Sunday, first-placed Arsenal could build up a four-point lead at the top of the Premier League standings if they beat Wolves on Saturday.
However, Arteta said Arsenal are ignoring talk of the title race and are solely focused on Wolves, who have already beaten City and Tottenham Hotspur this season.
"Our focus is on understanding what we need to do to win the game," Arteta said.
"We can only control what we can do. 'Ifs' in this league are not positive to have in mind. We are really hungry to play in front of our crowd tomorrow and win the game.
"Wolves have a lot of quality. It's not a coincidence, what they are doing. They perform really well, especially against the top sides."
IMPROVING VAR
Wolves are still stinging from their 3-2 loss to Fulham last week, in which the London side were awarded a late penalty by VAR.
Following that defeat, Wolves boss Gary O'Neil said he no longer supported the use of VAR.
Asked about O'Neil's comments, Arteta urged the need for patience with the technology, saying: "All the things that are happening are probably necessary to improve it and we have to take it that way...
"If we use it the right way and are listening to people, we are open and we are humble and we are trying to be constructive, I think we will get to a really good place."
