uilders cut sharply back on construction after the housing bubble burst. The weakness in housing spread to the financial sector as defaults on home mortgages soared. This all contributed to pushing the country into the worst recession in seven decades. Most economists say the overall recession has likely ended.

Builders have been ramping up because buyers want to take advantage of a new federal tax credit for first-time homebuyers. It covers 10 percent of a home price up to $8,000, and is set to expire at the end of November.

The National Association of Home Builders said this week that its housing market index rose in September, reflecting growing optimism in the industry about rising home sales. The trade association said its index rose one point to 19, the highest reading since April 2008.

Homebuilders' stocks jumped following the release of that report and mostly moved higher early Thursday. Shares of Beazer Homes USA Inc., and Hovnanian Enterprises Inc., were each up more than 6 percent in morning trading. Financial results for homebuilders also were better than expected in the latest quarter.

The Dow Jones U.S. Home Construction Total Stock Market Index has surged since bottoming in November but remains only at about a third of the level achieved at its recent peak in 2005. Associated Press