US home builders not optimistic in August

Friday, August 12, 2011, Vol. 35, No. 32

WASHINGTON (AP) — Homebuilders are not feeling very good about a turnaround in the U.S. housing market.

The National Association of Home Builders says its index of builder sentiment in August was unchanged at 15. Any reading below 50 indicates negative sentiment about the housing market. The index hasn't reached 50 since April 2006, the peak of the housing boom.

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.

Fewer homes mean fewer jobs. Each new home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the builders' trade group.