U.S. Home Building Unexpectedly Slumps in October
U.S. Home Building Unexpectedly Slumps in October
By JAVIER C. HERNANDEZ
New home construction slowed unexpectedly in October to the lowest level in six months, the Commerce Department said Wednesday, resurrecting fears that the housing market may be slow to recover.
A separate report showed consumer prices inched upward in October, but not enough to make inflation a concern even as the dollar weakens and interest rates remain at historic lows.
The data on home construction showed a decline in the rate of single- and multiple-family homebuilding, contributing to an overall decrease of 10.6 percent in housing starts from September. In total, construction was at a seasonally adjusted annual rate of 529,000 housing units in October, falling short of the 590,000 predicted by analysts. Building permits, an indicator of future construction, declined as well, to an annual rate of 552,000 from 575,000, also falling short of forecasts.
Apartment construction slowed to a historic low, dipping to a seasonally adjusted annual rate of 53,000 in October. Analysts attributed the decrease to the reluctance of banks to finance large construction projects and lackluster demand for rentals as vacancies remained abundant.
(Excerpt) Read more at nytimes.com …
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