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Summary Box: Homebuilder sentiment index up in May

BULLISH BUILDERS: A key gauge of U.S. homebuilders' confidence shows the sector is feeling more optimistic about its business prospects.

INDEX: The National Association of Home Builders' housing market index climbed three points in May to 22, the highest reading since August 2007. Readings rose for current sales conditions, traffic from prospective buyers and sales expectations over the next six months.

WISHFUL THINKING?: The positive outlook runs counter to the view of economists who project home sales will weaken because two homebuyer tax credits that helped boost sales expired last month.
   
Copyright 2010 The Associated Press.

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