The National Association of Home Builders released its report on homebuilder confidence in the market for newly built homes in the month of February. The NAHB/ Wells Fargo Housing Market Index for single family homes rose two points to 17 from 15 as favorable market condition and signs of improvement in job market contributed to the increase.

NAHB Chairman Bob Jones said, “Continued low interest rates, very attractive home prices that appear to have stabilized in many markets, and the availability of the home buyer tax credit make this an opportune time for potential purchasers,”

“As a result, builders are slightly more optimistic that the housing recovery is finally beginning to take root” Jones added.

The HMI for February increased two points to 17, its highest level since November of 2009. Two out of three of its component indexes rose. The component gauging current sales conditions increased to 17 in February from 15 in January, while the component gauging sales expectations in the next six months climbed a single point to 27. Meanwhile, the component gauging traffic of prospective buyers was flat, at 12.

Regionally, February’s HMI results were mixed. Midwest and South each registered two-point increase, to 13 and 19, respectively. The Northeast and West each registered one-point declines, to 19 and 14, respectively.

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.