August 17, 2010

Builders’ confidence index slumps to 17-month low

WASHINGTON — Home builder confidence slumped in August to a 17-month low, according to a report released Monday, in another indicator of a tentative housing market.

The National Association of Home Builders/Wells Fargo Housing Market Index fell 1 point to 13, its worst reading since March 2009. Economists polled by MarketWatch had anticipated a rise to 15.

To put the data in perspective, any reading above 50 indicates that more builders view conditions as good than poor. There hasn’t been a reading above 50 since April 2006.

Builder pessimism is also reflected in the stock market — both the SPDR S&P Homebuilder exchange-traded fund and iShares Dow U.S. Home Construction Index Fund are mired near 52-week lows.

The full article link is below.

Builders’ confidence index slumps to 17-month low

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