WASHINGTON, DC—Builders have become more confident in the health of the single-family housing market, the National Association of Home Builders said Monday. The NAHB/Wells Fargo Housing Market Index climbed five points to reach 59 for the month of June, its highest reading since September 2014. Two components of the HMI have reached their highest levels in nearly 10 years.

Bloomberg reported Monday that the HMI beat consensus estimates putting it at 56 for the month. It also exceeded even the most optimistic estimates of 48 economists, who predicted a score of anywhere from 54 to 58. A score greater than 50 means more builders view conditions as good than poor.

Derived from a monthly survey that NAHB has been conducting for the past three decades, the HMI saw healthy gains in all three of its components for June. The component gauging current sales conditions jumped seven points to 65, the index charting sales expectations over the next six months increased six points to 69 and the component measuring buyer traffic rose five points to 44.

“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,” says NAHB's chief economist, David Crowe. “At the same time, builders remain sensitive to consumers' ability to buy a new home.”

On a regional basis, the three-month moving averages for the South and Northeast each rose three points to 60 and 44, respectively. The West posted a two-point gain to 57, while the Midwest dropped by one point to 54.