The National Association of Home Builders reported that its index of home builder sentiment, a measure of confidence in the housing market, remained at a record low reading of 9 in December. That number reflects the lowest point on record since the group began its survey in 1985.

Any reading below 50 is an indication that more builders view housing market conditions as poor rather than favorable.

“The crisis continues,” said NAHB Chairman Sandy Dunn  in a statement. “While builders are doing everything we can in the way of price and non-price incentives to move new homes off the books, buyers are afraid to move forward, and in any case there is almost no way to compete with the cut-rate product that is continually flooding the market from mounting foreclosures.”

The NAHB hopes the government will give buyers more incentive to move forward by extending more tax credits and interest rate modifications in coming months.

“Expanding the first-time buyer tax credit and providing government action to reduce mortgage rates would go a long way toward arresting this downward spiral, just as a combination of similar moves worked in the 1970s to boost the housing market and economy,” NAHB Chief Economist David Crowe said.

Currently, U.S. home builders are at a stand still, constructing very few new homes, waiting for current inventories to get worked off. The NAHB sees no immediate hope for market improvement.

“We have seen no improvement over the past month in terms of sales conditions for new homes,” Crow lamented. “In fact, certain factors have gotten progressively worse, not the least of which is the job market, where massive layoffs are having a devastating effect on consumer confidence.”

Without government intervention, the NAHB does not predict a quick end to landslide of foreclosures and feeble new home sales.