The NAHB's homebuilder confidence index, which measures expectations for single-family home sales, added three points in August for a composite score of 59. The index has increased by 19 points since April and turned positive (a score of 50 or higher) in June.

Homebuilder confidence in the new single-family housing market rose three points to 59 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for August. This fourth consecutive monthly gain brings the index to its highest level in nearly eight years.

''Builders are seeing more motivated buyers walk through their doors than they have in quite some time,'' said NAHB Chairman Rick Judson. ''Firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market.''

Two of the HMI's three components posted gains in August. The component gauging current sales conditions rose three points to 62, while the component gauging sales expectations in the next six months gained a single point to 68 and the component gauging traffic of prospective buyers held unchanged at 45. Scores over 50 indicate that more builders view conditions as good than poor.

''Builder confidence continues to strengthen along with rising demand for a limited supply of new and existing homes in most local markets,'' said NAHB Chief Economist David Crowe. ''However, this positive momentum is being slowed by the ongoing headwinds of tight credit and low supplies of finished lots and labor.''

Monthly HMI results can be found at nahb.org/hmi.