Homebuilder sentiment index rises in May to highest point since August 2007

Homebuilder sentiment index jumps in May

LOS ANGELES — The National Association of Home Builders says its housing market index climbed in May, reflecting a rosier outlook for sales this year despite the end of homebuyer tax incentives.

The Washington-based trade association said Monday its index rose three points to 22, the highest reading since August 2007.

Readings below 50 indicate negative sentiment about the market. The last time the index was above 50 was in April 2006. The report reflects a survey of 416 residential builders nationwide.

The reading for current sales conditions jumped three points to 23. The index measuring foot traffic from prospective buyers also rose three points to 16, and the index for sales expectations over the next six months improved three points to 28.