(Reuters) – U.S. homebuilding stocks rose on Monday, boosted by data that showed homebuilder sentiment rose in August to its highest level since January.

Sentiment rose as labor market conditions improved, according to the National Association of Home Builders data. The NAHB/Wells Fargo Housing Market index rose to 55 in August from 53 in July, the group said in a statement. It was the third straight monthly gain, and topped the mean estimate of analysts polled by Reuters for a reading of 53.

Following the data, the PHLX Housing index .HGX rose 1.5 percent, more than twice the advance of the S&P 500’s .SPX 0.7 percent rise. PulteGroup Inc (PHM.N) was one of the S&P’s biggest percentage gainers, up 2.3 percent to $18.69.  Read more