The National Association of Home Builder’s latest reading shows the housing market index at 19 this month, highlighting a slump in confidence over both current housing conditions and those to come.

Index readings higher than 50 show confidence in the market, says USA Today, but the number has been below this since May of 2006 and in decline ever since.

USA Today reports both the Nov. and Oct. readings at 19, the lowest since Jan.1985 when the index began. Yet the Nov. reading shows increased pessimism from builders, with 57 percent predicting the market slump lasting at least six months.

CNN reports just 5.7 percent of builders are expecting a good housing market come 2008. Only in the second half of next year, when builders look to reducing the inventory of unsold homes, is a recovery expected.

The National Association of realtors further reports that new home sales are predicted to fall 24 percent from last year. The projected drop to $796,000 this year is expected to fall further to $693,000 in 2008.

The record drop in builder confidence USA Today ties to fewer buyers stemming from tighter lending standards and rising defaults from borrowers with weak credit.

Many builders have also blamed the media for discouraging buyers, says CNN, impacting the market as a whole through blanket negative reporting.