CONFIDENCE among US homebuilders surged in June to the highest level in seven years, reflecting gains in sales as Americans rushed to tap low mortgage rates.

The National Association of Home Builders/Wells Fargo index of builder sentiment rose 8 points, the biggest monthly increase since September 2002, to 52 during the month, the Washington-based group said yesterday. The reading, the highest since March 2006, beat all 50 forecasts in a Bloomberg News survey in which the median was 45. Readings above 50 mean more respondents said conditions were good.

"Builders are experiencing some relief in the headwinds that are holding back a more robust recovery," David Crowe, the group's chief economist, said in a statement. "Today's report is consistent with our forecast for a 29 percent increase in total housing starts this year."

Low mortgage rates, a strengthening job market and limited inventories are benefiting builders as the housing market contributes to growth this year after emerging as a bright spot in 2012. Gains in housing will help the world's largest economy move through a global slowdown that is hurting manufacturing.

A report yesterday showed manufacturers in the New York region felt more optimistic in June even as orders, sales and employment fell, indicating the area's factories are looking beyond the current slowdown in growth.

The Federal Reserve Bank of New York's general economic gauge, known as the Empire State index, climbed to 7.8 this month, the highest reading since March, from minus 1.4 in May. The median projection in a Bloomberg News survey of 51 economists called for a reading of zero.