Housing Starts, Permits, Fall To New Lows

Washington, DC, Nov. 19, 2008-- Housing starts and permits, two key measurements of home construction, hit record lows in October, the Commerce Department reported Wednesday.

Housing starts reached an annual rate of 791,000 last month, the lowest level since the department began tracking starts in 1959. The rate tumbled 4.5% from the revised reading of 828,000 in September.

Building permits fell 12% to an annual rate of 708,000 in October, breaking the previous low of 709,000 in March 1975. The annual rate for September was revised to 805,000.

An annual rate of 780,000 housing starts was expected for October, according to a consensus of economists. Building permits were expected to fall to an annual rate of 772,000 in October.

Concerns about the housing slump pressured stocks Tuesday after a survey of homebuilders showed sentiment fell to yet another low in November.