Ahead of the Bell: Builder Sentiment

A reading of housing developers' sentiment about the U.S. market is expected to remain at its all-time low in July.

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

July's reading for the index is expected to remain at a record low of 18 for the second straight month, according to the consensus forecast of Wall Street economists surveyed by Thomson/IFR. The reading fell to that level in June, matching the low set in 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.