CNN Money reports on the latest home builder confidence survey released today by the National Association of Home Builders:
The subindex measuring builders' view of current market conditions fell to the lowest level since February 1991.
. . .
The trade group cited tighter credit for potential buyers following the meltdown in the subprime mortgage sector, which sparked a flurry of cancellations in new home orders.
"The crisis in the subprime sector has infected other parts of the mortgage market as well as consumer psychology, and as a result the housing outlook has deteriorated," David Seiders, the builders' chief economist, said in a statement.
"We're now projecting that home sales and housing production will not begin improving until late this year, and we're expecting the early stages of the subsequent recovery to be quite sluggish," he added. "There still are tremendous uncertainties regarding our baseline forecast going forward, owing largely to the subprime crisis that is having widespread effects throughout the mortgage market."