Housing starts and permits, key measurements of home construction, hit record lows in October, the Commerce Department reported Wednesday.
Housing starts reached an annual rate of 791,000 last month, the lowest level since the department began tracking starts in 1959. The rate tumbled 4.5% from the revised reading of 828,000 in September.
Building permits fell 12% to an annual rate of 708,000 in October, breaking the previous low of 709,000 in March 1975. The annual rate for September was revised to 805,000.
“Housing starts were a little better than expected, but unfortunately the expectations were so low, the bar was easy to cross,” said Art Hogan, chief market strategist at Jefferies & Co. “I don’t think there’s anybody in the free world who doesn’t know we’ve got a problem with real estate.”
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