Builder Sentiment Tumbles As Tax Credit Expires

The NAHB Home Builder Survey reported a massive 5 point drop, reaching 17, on expectations of 21. The reason for the plunge - concerns about the end of the tax credit. Not even Goldman could spin this news favorably: "Housing market index 17 in June vs. median forecast 21. The National Association of Home Builders reported a 5-point drop in its housing market index for June, pushing it back below the 20 level that had been the low prior to the latest housing market recession. The main driver of the decline was the assessments of current home sales, which dropped 6 points; assessments of future sales and of buyer traffic were down less substantially (-4 and -2, respectively). All four regions suffered declines, but the biggest by far was in the Northeast, where the index had surged to 35 in May only to come back down to 18."Metric by metric, the double dip become increasingly more appreciated.