The National Association of Home Builders stated that its housing market index cut down this month to the lowest level since last summer.

The plunge reflects fears that demand for new homes will be weak despite the extension of a federal tax credit for buyers.

The reading of 15 is the second-straight monthly decline and the lowest since June. It reveals that builders are depressing about their prospects albeit Congress extended the deadline for the tax credit of up to $8,000 for first-time homebuyers and expanded it to include $6,500 for existing homeowners who have moved.

The index reflects a survey of 504 residential developers nationwide. Index readings below 50 indicate negative sentiment…

Decline in the housing market almost affected every homeowners in U.S. especially in California where foreclosure rates are high and property price declines. But among the racial groups including Blacks, Whites, and Hispanics, the Asians surprisingly turned out to be the most affected.

Asians being the most affected among the groups is definitely a surprising result since they are known to earn more and have less debt. But according to the survey, one out of three Asian homeowners who live in California has experienced foreclosures and drops in home values. These are also supported by data showing that Asian homeownership dropped 1.24 percentage points last year to 59.4 percent while the…