US Housing market: Homebuilder Confidence in U.S. Unexpectedly Decreases - by Bob Willes

Confidence among U.S. home builders unexpectedly dropped in January to the lowest level since June, a sign the housing recovery may stall in coming months.

The National Association of Home Builders/Wells Fargo index of builder confidence decreased to 15 from 16 the prior month, the Washington-based group said today. Readings below 50 mean most respondents view conditions as poor.

The report showed traffic slowed to a 10-month low, indicating the government’s extension and expansion of its first-time buyer program has, so far, not drawn in new demand after propelling total sales to an almost three-year high in November. A projected record 3 million foreclosures this year may also pressure prices, making it more difficult for homebuilders to turn a profit.

For more: Homebuilder Confidence in U.S. Unexpectedly Decreases (Update2) - BusinessWeek