Builders Confidence Down to its Lowest Homebuilders confidence dropped to an all-time low this month as US financial crisis continue to worry investors and builders an industry trade association said Thursday.

The National Association of Home Builders/Wells Fargo housing market index dropped to a reading of 14 which was 3 points lower in September after a one point increase in August. The index was started in January 1985. Above 50 index readings mean positive sentiment about the market. The index has gone down below 50 since May 2006 and below 20 since April this year. NAHB's latest survey reflects builder-members attitude towards the current economic situation and financial woes on Wall Street, growing unemployment and falling consumer confidence.

The group called on lawmakers to enact an economic stimulus package with incentives for homebuyers. "The impacts of the record-breaking housing contraction have spilled over to other key sectors of the economy and weighed heavily on financial markets, and stabilizing housing is now the best chance we have to limit the severity of recession," NAHB Chief Economist David Seiders said. Falling home prices, reduced demand for new and pre-owned homes, stricter lending standards and increasing foreclosed properties increased the level of competition for buyers.