Despite predictions that it would rise, the index that measures home builders’ sentiment about the health of their businesses fell one point to 18 in October.

This was the first decline since June, when it slipped to 15. Home builders blamed their pessimism on the expiration of the first-time homebuyer tax credit.

The National Association of Home Builders is pushing for a 12-month extension of the credit. That would amount to a very effective stimulus to housing demand and a needed boost to the overall economy, said David Crowe, the NAHB chief economist.

NAHB index reflects a survey of 493 residential developers nationwide. Any reading below 50 suggests a negative sentiment.

Source: Associated Press, Alex Veiga