May 30, 2007

Home Builders

Home Builders' Confidence Falls

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Home builder confidence fell for the third straight month in May and executives in the battered sector now believe they'll have to wait until next year for even a sluggish recovery to begin.

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According to a�survey by the National Association of Home Builders,�the confidence index sank to 30 in May from 33 in April, matching the September reading that had been a 15-year low at that time.� The subindex measuring builders' view of current market conditions fell to the lowest level since February 1991, while their view of the market six months from now and their perception of buyer demand both dropped to match the 15-year lows hit in late 2006.

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The association is now projecting that home sales and housing production will not begin improving untl late this year, and they are expecting the early stages of the subsequent recovery to be sluggish.

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