Growing interest leaves homebuilders less gloomy

U.S. homebuilders are growing a little less pessimistic about the depressed housing market after seeing more people say they might be open to buying a home this year. The National Association of Home Builders/Wells Fargo builder sentiment index rose four points to 25 in January. That's the highest level since June 2007. Even with the fourth straight increase, the general mood is dim. Any reading below 50 indicates negative sentiment about the housing market. The index hasn't reached 50 since April 2006, the peak of the housing boom. The index is rising because builders are seeing a rise people shopping for a home -- not because they are not seeing more sales. In fact, 2011 may end up being the worst year for new-home sales on records dating back half a century. Builders are struggling to compete with foreclosures, which have forced down prices of previously occupied homes. And many people are finding it hard to qualify for loans or meet higher required down payments.

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