Builders broke ground on fewer homes in August than in July and the same month a year ago, evidence that the nation's housing depression is continuing – despite ultra low mortgage rates.
The Commerce Department reported Tuesday that builders began work on 417,000 single-family units (annualized) during the month, a slight decline from July, and a 2% drop from August 2010.
Even multifamily starts declined, falling to an annualized rate of 148,000 units, registering a 12% sequential drop.
Total starts (single and multifamily) came in at 571,000 units, the worst reading since May.
However, some analysts blamed Hurricane Irene for slowing construction in the Northeast.
One positive sign was building permits, which rose 3.2%.
In a statement released Monday concerning its sentiment index, one official from the National Association of Home Builders noted that, “Builders continue to confront the same challenges in accessing construction credit, obtaining accurate appraisal values for new homes, and competing against foreclosed properties that they have seen for some time.”
