Homebuilders show lack of confidence in housing market

The National Association of Home Builders/Wells Fargo Housing Market Index for September found builder confidence for new single-family homes fell from 15 to 14 points, with the index stuck between 13 and 16 for six consecutive months.

Bob Nielsen, chairman of NAHB, said little has changed in the housing market for 2011, but consumer and builder confidence have suffered due to the Standard and Poor's downgrade of the U.S. economy and the congressional debate over the budget deficit from last month.

"Builders continue to confront the same challenges in accessing construction credit, obtaining accurate appraisal values for new homes, and competing against foreclosed properties that they have seen for some time," Nielsen said.

NAHB chief economist David Crowe said overall builders are aware that consumers are unwilling or unable to buy a new home due to the weak economy and poor job market, despite select metro areas experiencing modest growth.

Federal Reserve Chairman Ben Bernanke recently said the key to boosting the U.S. economy lies in the hands of European lawmakers, as the region remains riddled with a financial debt crisis. Reuters reported that in a meeting with European finance ministers in Poland, Treasury Secretary Timothy Geithner tried to urge leaders to leverage a bailout fund to take care of the debt crisis.

Chief investment strategist at Windham Financial Services Paul Mendelsohn told the news source the economy has been working hard to show growth, and if the European crisis does not cascade out of control, the U.S. might be able to rally in the upcoming months. 

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