Builder confidence falls in February

Clouds on the housing horizon?

Confidence among U.S. home builders fell in February to its lowest level in six months, due largely to a decline in traffic in potential home buyers anxious about a looming U.S. war with Iraq, according to the National Assn. of Home Builders.

The group’s housing market index, a measure of builder sentiment about sales and buyer traffic, fell in February to 62 points -- its lowest level since 55 points in August -- from January’s 64. The index reached a two-year high at 65 in December.

“People are worried about the war and the economy. The falloff in prospective buyer traffic squared with the decline in consumer confidence,” said David Seiders, the association’s chief economist.

An index reading higher than 50 indicates more builders view sales conditions as good than as poor.