Home Builder Confidence Hits Record Low

Washington, DC, July 16, 2008--The confidence of U.S. home builders has hit a new low.

The National Association of Home Builders said Wednesday that its July index for sales of new, single-family homes dropped to 16 from 18, a new record.

The previous record low had been 18, set in June. NAHB records began in January 1985.

Expectations for sales in the next six months fell to a record-low 23 from 27 in June, the NAHB said. The traffic of prospective buyers decreased to a record-low 12 from 16.

"Given the systematic deterioration of job markets, rising energy costs and sinking home values aggravated by the rising tide of foreclosures, many prospective buyers have simply returned to the sidelines until conditions improve," NAHB chief economist David Seiders said.

Within the NAHB's housing market index, the component for present sales of single-family homes was a record-low 16, down from 17 in June. It measures current sales conditions.

The NAHB wants a temporary tax credit of up to $8,000 for home buyers to jump-start the housing sector and overall economy.

"The worsening housing slump and the near-meltdown in financial markets last week makes it even more urgent for Congress to complete action on the housing bill now, a move that will help stabilize and restore confidence in housing and the U.S. economy," said NAHB President Sandy Dunn.