Ahead of the Bell: Builder Sentiment

The National Association of Home Builders/Wells Fargo housing market index for June is scheduled to be released Monday at 1 p.m. EDT.

June's reading for the index is expected to rise one point to 20, according to the consensus forecast of Wall Street economists surveyed by Thomson/IFR. The reading fell to 19 in May after holding steady at 20 from February through April. It hit a record low of 18 last December.

The report reflects a survey of about 400 residential developers nationwide, tracking builders' perceptions of current market conditions and expectations for home sales over the next six months.

Index readings higher than 50 indicate positive sentiment about the market. The seasonally adjusted index has been below 50 since May 2006.

Tighter lending standards, rising defaults and fear about the housing market's future have sidelined buyers, an absence felt acutely by homebuilders such as D.R. Horton Inc., Pulte Homes Inc. and Centex Corp.

The home builders' trade group has been urging lawmakers to include a tax credit for home buyers in a housing stimulus package being considered in Congress.

Last week, credit rating agency Fitch Ratings downgraded several major homebuilders, saying it expects the housing market to perform worse than previously expected this year.