The confidence of Homebuilders dropped for the third straight month as the economy of the United States is still unstable and a lot of houses are foreclosed. These factors have kept a lot of people from purchasing new houses. According to the National Association of Home Builders, the monthly index, which is seasonally adjusted is the lowest since March of 2009, with a value of 13.

How this works is that if the builder sentiment reading is below 50, the sentiment is negative. The last time that the sentiment was positive is during April 2006. Home builders are saying that many buyers simply cannot risk buying homes because they are afraid the economy might be too weak or that the job market may not strengthen.

There was a little light for builders from the federal tax credits, but these expired last April. Therefore, according to, Bob Jones, who is a builder from Bloomfield Hills, Michigan, builders and buyers have one thing in common, and that is they are both afraid that the economy is not okay. Foreclosures are also a big problem. According to a survey, around 90 percent of surveyed builders stated that their market is hurt by foreclosures.