With the current real estate slow down in progress it comes as no surprise that the home builders of America have their level of confidence down a bit.

On Monday the National Association of Home Builders released their latest report on their housing index. The builders that were surveyed had their lowest confidence level since February 1991 with a reading of 28.

Builders are asked about their perception of the future outlook for the coming six months as well as rate the current amount of traffic of prospective buyers. The answers are then used to calculate a seasonally adjusted index. Any number over 50 means more builders view sales conditions as good than poor.

Unfortunately it’s going to get worse before it gets better according to NAHB chief economist David Seiders:

“Home sales most likely will erode somewhat further in the months ahead and improvements in housing starts probably will not be recorded until early next year. As a result, we expect housing to exert a drag on economic growth during the balance of 2007.”

It looks like new construction home buyers will continue to see builders offering free upgrades to get them to sign the dotted line on the purchase agreement.