The NAHB/Wells Fargo Housing Market Index showed increased confidence for the new single-family home market for the fifth consecutive month, rising to its highest point since 2007.

Shorter-term growth has been significant as well, with builder confidence doubling since September, according to NAHB Chairman Barry Rutenberg.

The index remains negative overall – meaning that it is under 50 – but more builders appear to be coming on board the notion of a recovery.

The overall score of the index, derived from three parts, went from 25 to 29.

As The Wall Street Journal noted, "keep in mind that the reading remains well below the boom, when numbers hit the high 60s and 70s. Of course, it is much better than the depressing eight seen in early 2009."

National Association of Home Builders said all three portions of the survey were better.

• Prospective buyer traffic rose from 21 to 22.
• Current sales increased from 25 to 30.
• Confidence about expected sales confidence went from 29 to 34.