WASHINGTON – Homebuilders' confidence in the housing market has sunk to the lowest level in more than a year, more evidence that the economic recovery is slowing.
The National Association of Home Builders says its seasonally adjusted housing market index fell to 14 in July. It was the lowest level since March 2009. June's index level was revised downward to 16.
Readings below 50 indicate negative sentiment about the market. The last time the index was above 50 was in April 2006.
Builders are reporting a sharp drop in the number of buyers looking for new homes now that federal tax credits of up to $8,000 have expired. Those incentives ended on April 30, although buyers who signed contracts by then have until September 30 to complete purchases.