Apparently the housing market is in such dire straights that not even the lowest reading in confidence among homebuilders in 16 years has been a catalyst to move stocks (or bonds). At the top of the hour, The National Association of Home Builders/Wells Fargo index of builder confidence fell to 22, from 24 in July. That was also the second weakest reading since the survey's inception in 1985.
However, since the gauge was widely expected to fall for six straight month amid rising defaults on subprime mortgages and an inventory glut, the weak report has been overlooked, leaving investors focused on tomorrow's more influential housing starts and building permits data to paint a more accurate yet dismal picture of the ongoing housing correction.