Homebuilder confidence remained underwater in May, as the NAHB index measuring builder sentiment fell two points to 45 after an initial report of 47 in April. An index score below 50 indicates more builders view conditions as poor than good.

Builder confidence in the market for new single family homes fell one point in May to 45, declining from a downwardly revised April reading of 46, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released May 15.

"Builders are waiting for consumers to feel more secure about their financial situation," said NAHB chief economist David Crowe. "Once job growth becomes more consistent, consumers will return to the market in larger numbers and that will boost builder confidence."

Components of the index were mixed in May. The component gauging sales expectations in the next six months rose one point to 57 and the component measuring buyer traffic increased two points to 33. Respondent assessments of current sales conditions fell two points to 48.

"After four months in which the HMI has shown little signs of fluctuation, it is clear that builder sentiment is becoming more in line with the market reality of a continuing but modest recovery," said NAHB Chairman Kevin Kelly. "However, builders expressed some optimism that sales will pick up in the coming months."

Regional HMI scores are also calculated on a three-month moving average. The South rose one point to 48, while the Midwest fell a single point to 47, and the West posted a four-point drop to 47. The Northeast held steady at 33.