U.S. home builder sentiment sank in June to match the lowest level on record set in December, an industry group said.

U.S. home builder sentiment sank 1 point in June to match the lowest level on record set in December, an industry group said on Monday.

The National Association of Home Builders said its preliminary NAHB/Wells Fargo Housing Market Index fell to 18 from 19, the same level reached in December and the lowest since the index began in January 1985.

A June reading of 19 was forecast in a Reuters poll of 43 economists.

Readings below 50 indicate more builders view market conditions as poor than favorable.

"None of it is encouraging," David Seiders, NAHB chief economist, said on a conference call.

Seiders said he is worried about rising mortgage rates and expects home sales volume to erode further in coming months as "consumer sentiment took another nose-dive" in early June.

The NAHB said its index of current single-family home sales was unchanged at an all-time low of 17 in June.

Its gauge of home sales over the next six months was unchanged at 28, hovering four points above its record low set in November.

The trade group's index of prospective buyers declined 1 point to 17, also holding four points above its record low reached in December.

I'm just finishing building a home.....i think as long as you have a steady job and income, the time is good to build.  In most cases, when building a home, you have instant equity.

 However, I can see why sentiment would be down for the big homebuilders who mainly operate in large metro areas which have ridiculous amounts of inventory built up, which will in turn drive down the price of a new home.

But, these big builders are offering incredible incentives.  I think if you're looking long term, it's a smart investment.