The National Association of Home Builders reported that its housing market index dipped this month to the lowest level since last summer.

The decline shows fears that demand for new homes will be weak despite the extension of a federal tax credit for buyers.

The January HMI reading of 15 is the second consecutive monthly decline and the lowest since June. Builders see bleak prospects for construction even though Congress extended the deadline for a tax credit of up to $8,000 for first-time homebuyers and expanded it to include $6,500 for existing homeowners who move.

Two of its three component indexes registered one-point declines, with the index gauging current sales conditions and the index gauging traffic of prospective buyers falling to 15 and 12, respectively. The index gauging sales expectations in the next six months held even, at 26.

The HMI dropped by a single point in three regions, with the Northeast falling to 22, the Midwest down to 11 and the South declining to 16. The HMI fell three points in the West, to 16.　

The index survey covered 504 residential developers nationwide. Index readings above 50 indicate positive sentiment about the market.