Dive summary:

• If the National Association of Home Builders' confidence index breaks the 50 barrier, it means more are optimistic than pessimistic about near-term prospects, and December's report moved it two points closer, to 47.
• Officially called the NAHB/Wells Fargo Housing Market Index, the survey of the industry tried to discern what builders think about current single-family home sales, what they foresee for the next six months and how traffic is for prospective buyers.
• The 47 is the best the index has seen since April 2006, and NAHB Chairman Barry Rutenberg said, "Builders across the country are reporting some of the best sales conditions they’ve seen in more than five years, with more serious buyers coming forward and a shrinking number of vacant and foreclosed properties on the market."

From the article:

Two of the HMI’s three component indexes are now above the critical midpoint of 50. ...