Home Builders Remain Pessimistic at Year End

New York, NY, December 17, 2007--Home builder sentiment stayed at record lows in December, hampered by continuing problems in the mortgage market and a large inventory of unsold houses, according to the National Association of Home Builders.

NAHB said its preliminary NAHB/Wells Fargo Housing Market Index remained at 19 in December, its lowest reading since the index started in January 1985.

Readings below 50 indicate more builders view market conditions as poor than favorable.

"Builders continue to look for signs of improvement in the ongoing mortgage market crisis that is weighing on housing and the overall economy," said NAHB President Brian Catalde in a press release.

“Today's report shows that builders' views of housing market conditions haven't changed in the past several months, and there clearly are signs of stabilization in the HMI.”

The gauge of current single-family homes sales rose to 19 from 18. The index of sales expected in the next six months rose to 26 from 24. The prospective-buyer index declined to 14 from 17, the group said.