US home builders’ confidence has touched all time low due to troubled situation in the subprime mortgage sector. There seems to be uncertainty in the mortgage sector and since there is no surety regarding the after effects of tightening mortgage lending standards for their home sales and some even feel the effect of subprime debacle on the current sales too.

Already a number of companies have shut shops in past one year due to borrower default and rising demand from lenders of the companies to take back the bad loans at a loss. It is expected that this debacle might have a negative effect on other sectors too.

This has seen builders offer incentives along with the property and even slashing prices in order to sell off their inventories. They have been adopting this strategy in expectations of a housing rebound but that doesn’t seem to be the scenario as of now.

Via usatoday