Homebuilder ETFs are trading at the highest levels since 2008 on gradually improving sentiment on the U.S. housing market.

For example, iShares Dow Jones US Construction (NYSEArca: ITB) is up 83% for the trailing year, according to Morningstar.

The National Association of Home Builders/Wells Fargo Housing Market Index rose to the highest level since February 2007, according to a report Wednesday. The benchmark measures builder confidence in the market for newly built, single-family homes.

“From the builder’s perspective, current sales conditions, sales prospects for the next six months and traffic of prospective buyers are all better than they have been in more than five years,” said Barry Rutenberg, chairman of the NAHB. “While there is still much room for improvement, we have come a long way from the depths of the recession and the outlook appears to be brightening.”

On Thursday, investors will get a report on July housing starts.

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