The NAHB’s index that measures builder confidence in the market for single-family homes rose five points, the association reported.

The National Association of Home Builders/Wells Fargo Housing Market Index for June reached 59 on a 100-point scale. The index is at its highest point since September 2014.

"Builders are reporting more serious and committed buyers at their jobsites and this is reflected in recent government data showing that new-home sales and single-family construction are gaining momentum," said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. 

David Crowe, the association’s chief economist, said housing market is growing.

 "The HMI indices measuring current and future sales expectations are at their highest levels since the last quarter of 2005, indicating a growing optimism among builders that housing will continue to strengthen in the months ahead," he said. "At the same time, builders remain sensitive to consumers' ability to buy a new home."