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Homebuilder sentiment rose for the first time in 5 months as builders are starting to see "some flickers of interest" among potential buyers, according to a survey on Monday that continued to show weakness in the housing market.
The National Association of Home Builders/Wells Fargo Housing Market Index rose more than expected to 16 from last month's 13.
Economists polled by Reuters expected a rise to 14.
A reading above 50 indicates that more builders view sales conditions as good than poor. The index has not been above 50 since April 2006.