U.S. homebuilders are feeling more optimistic about the housing market this month, reflecting strong growth in new-home sales and prices.

The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose two points to 60 following a downwardly revised reading of 58 in July.

Readings above 50 indicate more builders view sales conditions as good rather than poor. The index has mostly held at 58 this year since rising to 61 in January.

Builders' view of current sales and their outlook for sales over the next six months improved this month, while a gauge of traffic by prospective buyers declined slightly.

New home sales accelerated in June at the fastest pace in more than eight years, aided by strong job growth and low mortgage rates.