Builder Confidence Remains Low in September

Washington, DC, Sept. 20, 2010--Homebuilders confidence in September unexpectedly held to the lowest level in more than a year, according to the National Association of Home Builders/Wells Fargo confidence index.

The index was unchanged at 13, matching the August reading as the lowest since March 2009. The gauge was projected to rise to 14, according to the median forecast of 50 economists surveyed by Bloomberg News.

Index readings lower than 50 mean more respondents said conditions were poor. Economists' estimates ranged from 12 to 15.

The index of current single-family home sales was 13 in September and the measure of sales expectations for the next six months was 18, both unchanged from August.

“Builders haven’t seen any reason for improved optimism in market conditions over the past month,” said NAHB Chairman Bob Jones in a press release.

“If anything, consumer uncertainty has increased, and builders feel their hands are tied until potential homebuyers feel more secure about the job market and the economy.”

The confidence gauge fell to 12 from 15 in the Midwest and to 16 from 18 in the Northeast. It was unchanged at 8 in the West and improved to 14 from 12 in the South.