U.S. homebuilders remain pessimistic in August

U.S. homebuilders are just as pessimistic about the depressed housing market as they were two years ago. The National Association of Home Builders says its index of builder sentiment in August was unchanged at 15. The index has been below 20 for all but one month during the past two years. Any reading below 50 indicates negative sentiment about the housing market. It hasn’t reached 50 since April 2006, the peak of the housing boom. Separate gauges of current single-family home sales and foot traffic of prospective buyers each rose one point this month. But the outlook for sales for the next six months fell two points. Last year, the number of people who bought new homes fell to its lowest level dating back nearly a half-century. Sales this year haven’t fared much better. Builders are struggling to compete with foreclosures, which have made the price of re-sales more competitive. Many buyers are having difficulty obtaining loans or meeting higher down-payment requirements. Low appraisals are scuttling some deals after contracts have been signed. And some would-be buyers who want to purchase a new home can’t sell their old one.