Housing Market Index reaches 14-month high

Extending July's two point gain, the National Association of Home Builders/Wells Fargo Housing Market Index, which measures confidence among home builders, increased by one point to 18.0, the highest reading since June 2008.

The index remains at depressed levels, as a reading of 50 would suggest builders are neither optimistic or pessimistic, but the upward march off the all-time January low of 8 is suggesting a recovery is finally in place.

The NAHB's chief economist was quick to pounce on the improving outlook, noting that "one very positive aspect of today’s report is the big gain registered in the component gauging home builders’ expectations for the next six months."

But the NAHB is not taken any chances and continues to lobby for an extension of the $8,000 first-time home buyer tax credit.