The National Association of Home Builders seems confident that home buying will pick up in the second half of the year, but in the wake of federal tax credits expiring, consumers are staying out of the market longer than expected.
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The trade group said its 'Builder Confidence' index fell again in July, reflecting a number of negative trends including "hesitant home buyers, tight consumer credit, and continuing competition from foreclosed and distressed properties."
Despite the bad news, NAHB chief economist David Crow still believes low mortgage rates, affordable prices, and demographic trends will revive housing demand later this year and into next. He forecasts that new home sales will rise 10% this year compared to last.
