Dive Brief:

• Homebuilders are happier about the housing market than they have been in a long time. The National Association of Home Builders reported on Monday that confidence among builders hit its highest point in nine months — a sign that they believe better times are ahead.

• The NAHB/Wells Fargo Housing Market Index rose five points to 59 between May and June — four points more than economists had predicted. Any number greater than 50 indicates that more builders are optimistic than pessimistic about the near future of the market for new, single-family homes. The index is based on a survey of builders about their expectations for the next six months.

• Buyer traffic also rose five points in June, to 44, and a measure of current sales conditions jumped seven points to 65, the index showed.

Dive Insight:

Builder attitudes coincide with reports last month from the U.S. Commerce Department, which said sales of new homes rose 6.8% in April, and from the National Association of Realtors, whose pending home sales index soared that month to its highest level in nine years.

And although builders' confidence is high, they are “sensitive” to the struggle that many consumers — especially millennials — are having to afford to buy new homes, according to NAHB Chief Economist David Crowe.

The result: Inventory of new homes remains tight as builders continue to focus on wealthier, move-up buyers rather than reluctant first-timers.

Economist Joshua Shapiro told The Wall Street Journal: “There remains a big disconnect between what home builders are saying and what they are actually doing.”