Homebuilders in the west are feeling good about where the industry is headed.The NAHB / Wells Fargo Housing Market Index (HMI) showed that nationally, the index rose to 58, meaning builders have a positive view on where the industry is going. In the west, that index number hovers around 59 for December. 

The index tracks three components: current sales conditions, sales expectations and prospective buyer traffic. All three HMI scores posted gains this month: Sales conditions jumped six points to 64; sales expectations rose two points, to 62 and prospective buyer traffic gained three points, to 44. Since last December, the index is up 11 points, and has been above 50 for the past seven months. 

David Crowe, NAHB's chief economist, observed that the recent mortgage interest spikes haven't put off buyers, mainly because rates are still near historic lows. "Following a two-month pause in the index, this uptick is due in part to release of the pent-up demand caused by the uncertainty generated by the October government shutdown," Crowe said. "We continue to look for a gradual improvement in the housing recovery in the year ahead."