The National Association of Home Builders/Wells Fargo Housing Market Index rose six points in July to 57, making three months of gains and its highest level since January 2006. The seasonally adjusted index consists of three components: current sales conditions, sales expectations and traffic of perspective buyers. Any score over 50 means more builders view conditions as good versus those that consider them poor.

The current sales conditions index is at 60, up five points, and its highest point since early 2006. Even better news is that the component measuring sales expectations over the next six months gained seven points and is now at 67. The index measuring traffic of perspective buyers is up five points to 45. The latter two components are at their strongest readings since late 2005, NAHB said.

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