June home builder index falls to nine-month low (by Steve Goldstein)
WASHINGTON (MarketWatch) -- The already-weak index of builder confidence for new single-family homes fell 3 points in June to 13, the lowest reading since Sept. 2010, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Economists polled by MarketWatch had expected a 16 reading. "Builders are being squeezed by the continuing weakness in existing-home prices - against which they must compete -- as well as rising material costs," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. The worst-ever reading was 8 in Jan. 2008, and the gauge hasn't been above 50 since April 2006. The HMI is a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.