Construction of homes fell in September to their lowest level in more than 14 years amid deepening troubles in the housing market.
The Commerce Department reported on Wednesday that housing construction last month fell by 10.2 percent last month, pushing activity down to a seasonally adjusted annual rate of 1.191 million units.
Applications for building permits, considered a good sign for future activity, also fell sharply in September, dropping by 7.3 percent to 1.226 million units.
Downturn
Housing sales have been slumping since 2006 but has worsened in recent months as mortgage lenders have tightened standards for credit loans.
Earlier this week, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson warned that the downturn was likely to continue for some time.
The National Association of Home Builders reported Tuesday that its index of builder confidence dropped for the eighth consecutive month falling to the lowest level on record, slipping to 18 from 20 in September.
October 17 2007