Housing Index At Highest Level Since ‘07

U.S. homebuilders are growing more optimistic about their fortunes, with many expecting improved sales and customer traffic in coming months despite the end of homebuyer tax incentives.

The government incentives helped to boost home sales this spring as many buyers raced to purchase a home in time to qualify before they expired at the end of April.

Without the tax credits, however, many experts anticipate home sales will slow in the second half of this year. In addition, high unemployment and tight mortgage lending continue to keep many buyers on the sidelines.

The National Association of Home Builders said recently its housing market index, which tracks industry confidence, rose three points this month to 22, the highest reading since August 2007.

Sales of new homes rose 27 percent in March, the biggest monthly increase in 47 years. Still, new home sales are down 70 percent from their peak in July 2005.