Builder confidence in the market for newly built, single-family homes rose for the fourth consecutive month in January to its highest level since June 2007 on the NAHB/Wells Fargo Housing Market Index.

The index rose four points to 25. Each of the index’s three components, which measure current sales conditions, sales expectations in the next six months and traffic of prospective buyers, posted increases.

“Builder confidence has now risen four months in a row, with the latest uptick being universally represented across every index component and region,” noted Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev.

The index rose in all four regions of the U.S. with the Northeast posting the largest increase — a 9-point rise to 23.

“Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011,” noted NAHB Chief Economist David Crowe.

Source: CNBC and HAHB