Starts, permits and confidence sag

The latest National Association of Home Builders/Wells Fargo Housing Market Index, released this week, tied an all-time low set in 1991 -- the index dates back to January 1985.

The index for September was 20 -- a score below 50 indicates that more builders view sales conditions as poor while a score above 50 indicates that more view the conditions as good. The index is based on a survey that asks builders about current market conditions, expectations for the next six months, and the level of traffic by prospective buyers.

Builders aren't too optimistic about the next six months -- the individual index rating for that category was 26 -- the lowest on record.

Meanwhile, the U.S. Census Bureau reported today that housing starts and building permits dropped to the lowest rate since June 1995.

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