WASHINGTON, DC - A housing market indicator jumped to its highest point in five years, showing the largest increase since 2002.

The July NAHB/ Wells Fargo Housing Market Index jumped six points to a level of 35. The new level is the highest in more than five years and the largest one-month increase since the recession recovery in 2002.

The index tracks sales, expected sales and traffic in home selling. The expectations for sales in the next six-months rose 11 points, the highest in over five years and the largest jump in the 27 year history of the index, says NAHB.

Builders report buyers are more serious and feeling some urgency to buy to take advantage of low interest rates, and pressured to select from a limited new home inventory.

A number of builders say the availability of developed lots has dried up over the past several years and that price competition is possible.