Subprime Worries Weigh on Builders

There were confidence declines from all four of the nation's regions in April, with the Midwest index registering the biggest decline -- five points -- to 22. The Northeast showed a one-point decline to 38, the South posted a three-point decline to 37, and the West saw a two-point decline to 35.

"The subprime shakeout clearly is a serious matter for the single-family housing market," said NAHB President Brian Catalde, a homebuilder from El Segundo, Calif., in a statement. "Builders in the field are reporting adverse effects on both sales and cancellations at this time, and it remains to be seen how serious these effects will be as we move through the spring home buying season."