Home Construction Down 7.6%

Housing construction plunged 7.6% in September from the previous month, the biggest drop in four months, as both single-family and apartment construction suffered declines, the government reported today.

The Commerce Department said new homes were constructed at an annual rate of 1.68 million units in September, the slowest pace since last November. It was the fourth decline in the last five months. In an ominous sign for the future, building permits fell 3.6% in September, the third consecutive decline. Analysts had been looking for an improvement in single-family construction, given the fact that mortgage rates are hovering near the lowest levels of this decade.