Home Builder Sentiment at Near Historic Lows

Washington, DC, March 18, 2008--Sentiment among home builders held steady in March at near historic lows, according to the National Association of Home Builders, weighed down by the housing market and the credit crunch that is keeping buyers out of the market.

The NAHB/Wells Fargo Housing Market index held at 20 in March, just above December's low point of 18, meeting economists expectations. A reading of 50 indicates neutral sentiment. The highest recent rating was a 72 in June of 2005.

March's report showed that the credit crunch that has arisen from the mortgage market meltdown is deterring buyers.

"Our surveys confirm what I've been hearing personally from builders across the country, which is that interested buyers are out there, but they are either reluctant to go ahead with a home purchase or they are unable to find mortgage financing they can afford," said NAHB President Sandy Dunn.

The measure of current single-family sales also held at 20 in March and the measure of prospective buyers remained at 19.

The Northeast fell to 21 from a downwardly revised 23 in February. The Midwest remained at 16 for the third month. The South rose to 26 from 24. The West fell to 15 from an upwardly revised 16.