Builder confidence in the market for newly built, single-family homes in June increased five points to 59 on the National Association of Home Builders Housing Market Index, the highest rating since September 2014, according to the NAHB.
The HMI component gauging current sales conditions rose seven points to 65, the index charting sales expectations over the next six months increased six points to 69 and the component recording buyer traffic rose five points to 44.
A number over 50 indicates that more builders view conditions as good than poor.
"Builders are reporting more serious and committed buyers at their job sites, and this is reflected in recent government data showing that new-home sales and single-family construction are gaining momentum," said NAHB Chairman Tom Woods in a statement.
Regionally, the HMI in the South and Northeast each rose three points to 60 and 44, respectively. The West saw a two-point increase to 57, and the Midwest moved down one point to 54.
