Home Builder Sentiment Falls Again

Washington, DC, May 16, 2008--Homebuilder confidence fell unexpectedly this month among, signaling the housing slump won't turn around soon.

The National Association of Home Builders/Wells Fargo index of builder sentiment fell to 19 from 20 last month. The index reached a record low of 18 in December. Readings under 50 mean conditions are considered poor.

All three index components dropped. The reading on current sales of single-family homes hit a record low and builders may have to continue lowering prices.

Economists had forecast the index would be unchanged at 20 for a fourth month.

The index averaged 27 last year.

``Our measure at this level, this historically low level, does imply further deterioration of home sales and housing production,'' David Seiders, chief economist at the builders' group, said in a Bloomberg Television interview.

The measure of current single-family home sales fell to a record-low 17. Forecasts for sales six months from now dropped to 27 from 30.