The National Association of Home Builders (NAHB) released its housing market index for the U.S. on Wednesday. The NAHB housing market index climbed to 56 in April from 52 in March. March's figure was revised down from 53.
Analysts had expected the index to rise to 55.
The index increased as new home sales jumped.
A level above 50.0 is considered positive, below indicates a negative outlook.
"As the spring buying season gets underway, home builders are confident that current low interest rates and continued job growth will draw consumers to the market," the NAHB Chairman Tom Woods said.
The NAHB Chief Economist, David Crowe noted that builders are optimistic that the housing market will strengthen in 2015.