NAHB: Builder confidence drops in July

Builders aren't confident regarding the sale of new homes.
Builders aren't confident regarding the sale of new homes.
Those who use construction equipment are not feeling as good as they did earlier in the year, according to a recent report.

The National Association of Home Builders/Wells Fargo Housing Market Index showed that builder confidence about whether new single-family homes will move declined two points to 14 in July. A mark below 50 on the scale indicates that more builders are feeling negative about conditions.

"We continue to see a lull in home buying activity following the expiration of the federal home buyer tax credit program, as many of the sales that would have occurred this summer were likely pulled forward to meet that program's deadline," NAHB chairman Bob Jones said.

The tax credit gave first-time homebuyers as much as $8,000, while repeat purchasers could have earned up to $6,500. The credit effectively came to an end on April 30.

While the end of the credit may have stalled sales, Jones said builders are noticing that consumers are feeling reluctant to buy a home because of the state of the economy and the employment picture.ADNFCR-2034-ID-19898943-ADNFCR