Builder confidence, which had rebounded earlier in the year on hopes that a downturn in the housing market would not be prolonged or pronounced, continues to slide on concerns about problems in subprime mortgage lending.

The National Association of Home Builders/Wells Fargo Housing Market Index, a monthly survey gauging builders’ expectations for the next six months, shows a level of pessimism not seen since September 2006.

This month’s index of 30 is down from 33 last month and a recent high of 39 in February. The index can range from 0 to 100, with a score over 50 indicating more builders view sales conditions as good than poor.

The survey asks builders about their perceptions of current and future single-family home sales, asking them to rate them as “good,” “fair” or “poor.” Builders are also asked to rate traffic of prospective buyers as either “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect Black Friday Sale! Bundle our next two events or secure your 2021 All Access Pass.SEE THE DEALS×
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription