By Rex Nutting
WASHINGTON (MarketWatch) - As expected, U.S. home builders sharply reduced construction as a federal tax break for home buyers expired, according to estimates released Wednesday by the Commerce Department. Housing starts fell 10% to a seasonally adjusted annual rate of 593,000 in May, the lowest level since December. The details were even worse, as starts of single-family homes plunged 17% to a seasonally adjusted rate of 468,000, the lowest in a year. Building permits fell sharply in May for the second straight month, with total authorizations falling 5.9% to a 574,000 annual pace after falling 10% in April. Single-family permits fell 10% for the second month in a row to a 438,000 pace.
