Homebuilder Sentiment Declines in June

Washington, DC, June 16, 2011 -- U.S. homebuilder sentiment unexpectedly fell in June to its lowest level since September 2010 as the market continued to struggle, the National Association of Home Builders said.

The NAHB/Wells Fargo Housing Market index fell to 13 in June from 16 in May, while economists had expected the gauge to hold at 16. The index had come in at 16 in six of the past seven months as of May.

Readings below 50 mean more builders view market conditions as poor than favorable. The index has not been above 50 since April 2006.

Continuing weakness in existing home prices and rising materials costs have hit homebuilders, NAHB said.