WASHINGTON (AP) — A reading of U.S. homebuilders’ sentiment remained unchanged in April, just shy of its record low for the third consecutive month as the housing market failed to recover.
The National Association of Home Builders said Tuesday its housing market index came in at 20 this month, the third-lowest reading on record.
The index, derived from a survey of about 400 residential developers nationwide, gauges builders’ perceptions of current conditions, interest from potential buyers and expectations for home sales over the next six months. Index readings higher than 50 indicate positive sentiment.
The index has been at 20 or below since September, and below 50 since May 2006.
Tighter lending standards, rising defaults and fear about the housing market’s future have sidelined buyers, an absence felt acutely by homebuilders such as D.R. Horton Inc., Pulte Homes Inc. and Centex Corp.
Confidence rose slightly in the Northeast and West, but fell in the Midwest and South. Traffic from prospective buyers also remained unchanged, the trade group said.
The builders’ group’s chief economist, David Seiders, says…
