WASHINGTON (AP) — U.S. homebuilders’ confidence rebounded in November as both sales expectations and buyer traffic improved.

The National Association of Home Builders/Wells Fargo index rose to 58 this month, up from 54 in October. That puts the index just short of September’s reading of 59, which was the highest level since November 2005, shortly before the housing bubble burst.

Readings above 50 indicate more builders view sales conditions as good rather than poor.

The index released Tuesday found sentiment had improved in the Northeast, Midwest, South and West. Builders expect sales to increase through the next six months.

Still, other indicators show that rising builder optimism has not necessarily been paired with a significant improvement in sales. Purchases of new homes were nearly flat in September, the Commerce Department reported. The pace of sales for newly built homes has improved a mere 1.7 percent so far this year compared to 2013, putting it below overall economic growth.

When the builder index was at a similar level in early 2006, the number of single-family housing starts was about 60 percent higher, noted Joshua Shapiro, chief U.S. economist at the forecasting firm MFR.

“There remains a big disconnect between what homebuilders are saying and what they are actually doing,” Shapiro said.

Most economists expect that the National Association of Realtors will report Thursday that sales of existing homes fell slightly in October. A survey by the data firm FactSet projects sales at an annual rate of 5.15 million for the month, down from 5.17 million in September.