By Chris Isidore, CNNMoney.com senior writer
September 19 2007: 10:37 AM EDT
NEW YORK (CNNMoney.com) — Housing starts and permits for new homes fell to their lowest level in 12 years in August, as the problems in the mortgage and real estate markets caused builders to slam the brakes on new construction.
The government report showed that housing starts fell to an annual pace of 1.33 million in August, down from a 1.38 million rate in July. Economists surveyed by Briefing.com had forecast starts would fall to a pace of 1.35 million in the month.
Permits, which are taken as a sign of builders’ confidence in the market, fell to an annual rate of 1.31 million from 1.39 million in July. Economists had also been looking for that number to fall to a 1.34 million rate.
The pace of building for single family homes fell even more sharply in the report, falling 7 percent to an annual rate of only 988,000, a 14-year low. Permits for single-family homes fell 8 percent to 926,000.
“The more volatile multifamily market hid some of the weakness in single-family homes,” said Wachovia economist Adam York.
See the full article here:
http://money.cnn.com/2007/09/19/news/economy/housingstarts/?postversion=2007091910
