Construction on new homes took another turn for the worse in December, falling more than 15% to a seasonally adjusted annual rate of 550,000, the lowest on record, the Commerce Department reported Thursday. Permits to build single-family homes fell 12.3% to a record-low 363,000 in December, while total permits including apartments dropped 10.7% to a 549,000 annual rate, also a record low. The report was much worse than expected for the second consecutive month. Economists surveyed by MarketWatch were looking for a smaller drop to an annual rate of about 600,000. Since June, starts have plunged 49%.
