Crowe said he expects that once the government impasse is resolved, builder and consumer optimism will bounce back, but some builders had already reported seeing slower sales and traffic in September, before the fiscal crisis reached its latest showdown.
Each of the three index components—current sales, sales expectations in the next six months and buyer traffic—dropped 2 points. Buyer traffic, however, is the only one still mired in the negative, at 44. Fifty is the line between positive and negative. Overall sentiment now stands at 55.
Regionally, looking at a three-month average, sentiment in the South remained unchanged. Builders were less optimistic in the West and the Northeast, and more confident in the Midwest, where home prices are lowest and homes most affordable.
(Read more: Map: Tracking the recovery)
Article source: http://www.cnbc.com/id/101114662