Builders in the U.S. started work on the fewest homes in a decade in July as the industry showed no sign of recovering from an 18-month recession.
The greater-than-forecast 6.1 percent decrease to an annual rate of 1.381 million followed a 1.47 million pace in June, the Commerce Department said today in Washington. Building permits also fell to a 10-year low.
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``Even the most ambitious homebuilders will think twice about initiating new projects,'' said Lindsey Piegza, an analyst at FTN Financial in New York. ``Falling prices, sluggish demand, and dwindling mortgage credit availability will continue to weigh heavily on residential construction.''
This news should surprise no one. Sales are dropping, inventory is very high and lending standards are tightening. I also hear there's a problem in the mortgage markets......
