Home builder confidence hits record low

The National Association of Home Builders said Tuesday that U.S. builder confidence has sunk to its lowest level since January 1985, when the index began.

The monthly Housing Market Index tracking builder confidence fell five points to nine, the association said.

"Today's report shows that we are in a crisis situation. If there's any hope of turning this economy around, Congress and the administration need to focus on stabilizing housing," the association's Chairman Sandy Dunn said in a statement.

The housing downturn has erased 3 million construction or building-related jobs, NAHB Chief Economist David Crowe said. "Congress should consider significant consumer incentives," he said.

In component indexes, current sales conditions fell six points to eight, a new low, NAHB said. The index measuring traffic of prospective home buyers also fell to an all-time low, down four points to seven.

The NAHB's index is based on a survey of 422 home builders. A leading index above 50 means a majority of builders indicated sales conditions are "good". A number below 50 means the majority of builders indicated sales conditions are "poor."

The numbers are also adjusted for seasonal variations in building sales.