The bounce rolls on. This morning, US Homebuilders gave their most positive outlook on the market in the past 12 months, as the National Association of Homebuilders/Wells Fargo Housing Market Index ticked up to 18, from 17.

To be sure, 18 is a dismal reading, but builders appear to see a light at the end of the tunnel. The question, of course, is whether that light is the end of the tunnel, or a train.

NAHB Chief Economist David Crowe echoed the positive sentiment:

“There is definitely a sense of hope among builders that the worst of the downturn is over and that a turning point is near at hand. Meaningful action by Congress could ensure that this upward momentum continues and that housing can help push the economy back onto solid ground.”

Builders have slashed prices to keep up with falling property values, as first time homebuyers and investors alike snatch up bank owned homes at what they perceive to be firesale prices. And with the current limited supply of foreclosed properties on the market, eager buyers may once again be turning to newly built homes.