Construction of new homes in the US fell in October to their lowest level in six months amid continued uncertainty among homebuyers over the sustainability of the rebound in the housing market.
The housing starts figures from the Commerce Department show that the number of new homes started in October dropped by 10.6% from September, to 529000. This was significantly worse than economists’ expectations of a 1.7% fall.
For single-family homes, the figures show a 6.8% fall in October to 467000. Applications for bulding permits, a gauge of future activity, fell 4% to an annual rate of 552000 units, also below economists’ expectations.
Prior to October, housing starts have been flat for four straight months after a big rebound earlier in the year from historic lows.