The National Association of Homebuilders (NAHB) announced on Tuesday its housing market index (HMI) surged 21 points to 37 in June from an unrevised May reading of 37.

Economists had forecast the HMI to increase to 45.

A reading over 50 indicates more builders view conditions as good than poor.

All three HMI components registered gains this month. The indicator gauging current sales conditions jumped 21 points to 63 in June, while the component measuring traffic of prospective buyers climbed 22 points to 43 and the measure charting sales expectations surged 22 points to 68.

NAHB Chairman Dean Mon noted: “As the nation reopens, housing is well-positioned to lead the economy forward. Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising. And buyer traffic more than doubled in one month even as builders report growing online and phone inquiries stemming from the outbreak.”

Meanwhile, NAHB Chief Economist Robert Dietz said: “Housing clearly shows signs of momentum as challenges and opportunities exist in the single-family market. Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower density neighborhoods. At the same time, elevated unemployment and the risk of new, local virus outbreaks remain a risk to the housing market.”