The National Association of Home Builders (NAHB) released its housing market index for the U.S. on Monday. The NAHB housing market index rose to 61 in August from 60 in July, in line with expectations. It was the highest level since November 2005.

A level above 50.0 is considered positive, below indicates a negative outlook.

The increase was driven by a rise in two of three components of the index. The buyer traffic subindex rose two points to 45 in August, the current sales conditions subindex climbed one point to 66, while the subindex measuring sales expectations in the next six months remained unchanged at 70.

"We continue to hear that builders face difficulties accessing land and labour," the NAHB Chairman Tom Woods said.

The NAHB Chief Economist David Crowe noted that there is "a gradual strengthening of the single-family housing sector in 2015".

"Job and economic gains should keep the market moving forward at a modest pace throughout the rest of the year," he said.