Housing Outlook: Homebuilder Confidence Stuck in a Rut

homebuilder confidence
homebuilder confidence

Homebuilder confidence remained flat in May, as tight credit and a glut of distressed properties on the market continue to deflate expectations.

The National Association of Home Builders/Wells Fargo Housing Market Index, which gauges builder confidence on three criteria -- current home sales, projected sales in six months and prospective homebuyer foot-traffic -- came in at the low score of 16 in May. The index has remained at 16 for six of the past seven months.