The National Association of Home Builders said Tuesday that its monthly reading of builders' sentiment was unchanged in January at 16, where it's been since November.

While it remains the highest reading since June, any reading below 50 indicates negative sentiment about the market. The index hasn't been above that level since April 2006.

"At this point, housing remains on the sidelines of a weak economic recovery as consumers and builders wait for clear and consistent indications that jobs and economic output are reviving," said David Crowe, the trade association's chief economist.

Many smaller, private builders also continue to have a tough time getting construction loans and other financing, which could significantly slow the onset of a housing recovery, Crowe noted.

High unemployment, tighter bank lending standards and uncertainty about home prices have kept many people from buying homes, despite low mortgage rates and home prices that have fallen by more than half in some markets since the peak of the housing boom.