Housing starts at decade low

Housing starts and permits both fell to their lowest levels in more than a decade, as the latest readings on the battered housing and homebuilding markets came in below expectations Thursday.

Housing starts fell 6.1 percent to an annual rate of 1.38 million in July from a revised 1.47 million rate in June. Economists surveyed by Briefing.com had forecast starts would fall to a 1.41 million pace in June.

Current Mortgage Rates

Type Overall avgs

30 yr fixed mtg 6.12%

15 yr fixed mtg 5.79%

30 yr fixed jumbo mtg 7.18%

5/1 ARM 6.21%

5/1 jumbo ARM 6.60%

The latest reading is the lowest level of starts since January 1997 and is down nearly 21 percent from the year-earlier level.

Starts of single-family homes fell even more sharply, dropping 7.3 percent to just over a 1 million annual rate, the lowest since December 1996 and the second lowest level in more than 12 years.

Building permits, which are often seen as a snapshot on builders' view on the state of the market, fell to an annual rate of 1.37 million from the June figure of 1.41 million, marking the lowest level since October 1996. Economists had forecast a rate of 1.4 million.

Permits for single-family homes fell to just over a 1 million pace, the lowest level in more than 12 years.