BUILDER CONFIDENCE DECLINES AMIDST SUBPRIME CONCERNSDespite favorable interest rates and growth in the job market, the confidence level of the nation's home builders receded this month among rising concerns about the subprime mortgage market, according to the National Association of Home Builders Housing Market Index (HMI). "Builders are uncertain about the consequences of tightening mortgage lending standards for their home sales down the line, and some are already seeing effects of the subprime shakeout on current sales activity," said NAHB Chief Economist David Seiders.After rising steadily during the past five months, the seasonally adjusted HMI now stands at 36, down three points from 39 in February and down 18 points from a year ago. All three components of the index declined this month. The indexes gauging current and future sales each declined three points to 37 and 50, respectively, while the component measuring buyer traffic edged down one point to 28.

**Taken from the California Association of Realtors Bulletin, dated March 21, 2007.