Builders glum on housing market despite uptick

Builders are pessimistic about the housing market, but are seeing a little more foot traffic after the worst summer for home sales in a decade.

The National Association of Home Builders says its monthly index of builders' sentiment rose in October to 16, the first increase in five months. The index had been at 13 for the past two months, the lowest level since March 2009.

The chart below illustrates the evolution of another step down in housing. Don't bother with surveys or indices, follow the money.

Housing Stocks to Gold Ratio:


Source: finance.yahoo.com