Builder confidence continues to slump in July

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There was a little more pessimistic news on the housing front Monday morning with an index measuring builder confidence dropping to its lowest level in more than a year.

Builder confidence, as measured by the National Assn. of Homebuilders’ housing market index, dropped for the second month in a row in July to 14, its lowest level since April 2009.

Any number over 50 indicates that more builders view conditions as good than poor. Sales of new homes plummeted 33% in May as a popular tax credit for buyers expired April 30.

The credit had been fueling sales of new homes.

“There is no longer any doubt that government intervention into the housing market was predominantly responsible for the stability and improvement we have seen throughout the industry,” said Dan Greenhaus, chief economic strategist for Miller Tabak + Co.

-- Alejandro Lazo