The National Association of Home Builders/Wells Fargo Housing Market Index was unchanged in March, but fell 3 points to 25, the trade group said.
The break-even point on the index is 50 points. Below 50 means more builders view business conditions as more unfavorable than favorable.
The index, which has been published for 25 years, asks builders to rate sales expectations for the next six month and current customer traffic, which is to say prospective buyers.
The index is low by historic standards and each of the component indexes registered declines in April, NAHB said.