P.M. BRIEFING : Housing Contruction Falls 5.4% to Its Slowest Pace in Four Years
Housing construction, suffering under the impact of rising mortgage rates, fell 5.4% in March as work on single-family homes slowed to the weakest pace in more than four years, the government said today.
The housing report by the Commerce Department was likely to intensify fears that the economy is in danger of toppling into a new recession. Housing, because it is so sensitive to rising interest rates, is often a harbinger of troubles in other sectors of the economy.
The report said applications for building permits, a good indicator of future activity, plunged by 13.7% in March, the biggest monthly drop since a 14% decline in October, 1981, in the early stages of the last recession.
The 5.4% decline in construction of new homes and apartments was the second monthly decrease, following a 12% drop in February.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
