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Builders losing confidence in recovery

WASHINGTON — Homebuilders are feeling increasingly pessimistic about their industry, more evidence that the economic recovery is slowing.

The National Association of Home Builders said Monday that its monthly reading of builders' sentiment about the housing market sank to 14 — the lowest level since March 2009. Readings below 50 indicate negative sentiment about the market.

The weak job market and an increasing number of foreclosed properties have prompted builders to limit construction of new homes. A modest revival in sales over the past year ended in May after federal tax credits expired at the end of April.

Conditions are not likely to improve soon. Reports this week on new home construction and previously owned home sales in June are expected to show the housing market remains deeply hobbled.

While the overall economy appears unlikely to fall back into recession, many analysts expect housing to struggle for some time.

Builders have sharply scaled back construction in the face of a severe housing market bust. The number of new homes up for sale in May fell to 213,000, the lowest level in nearly 40 years.

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