MW:Housing starts drop 9.9% to 836,000 rate in June
By Ruth Mantell
WASHINGTON (MarketWatch) -- Construction on new U.S. homes fell 9.9% in June to a seasonally adjusted annual rate of 836,000, reaching the lowest level since August 2012, led down by a large drop for apartments, the U.S. Department of Commerce estimated Wednesday. Economists polled by MarketWatch had forecast housing starts in June to hit an annual rate of 950,000, compared with an originally estimated May starts rate of 914,000. On Wednesday the government revised May's starts rate to 928,000. In June, starts for buildings with at least five units fell 26.7%, while starts for single-family homes declined 0.8%. Starts in June were up 10.4% from the same period in the prior year, pointing to ongoing recovery, though there's concern about the impact of rising mortgage rates on the housing market's rebound. Also Wednesday, the government reported that building permits, a sign of future demand, fell 7.5% in June to an annual rate of 911,000. Permits for buildings with at least five units fell 22.8%. Meanwhile, permits for single-family homes nudged up 0.6% to an annual rate of 624,000, the highest rate since May 2008.
