How bad is this housing slump? It's the worst slump since
the Great Depression, says Reuters in
response to newly released data that construction of new homes fell to a
17-1/2-year low in August, according to the Commerce Department.
Starts on new homes fell 6.2 percent to a seasonally
adjusted rate of 895,000, which is the lowest rate since January 1991, Reuters says. Making matters worse, the "battered housing sector" is
described by Treasury Secretary Henry Paulson as the single biggest threat to
the U.S.
economy, Reuters says.
Additionally, new applications for building permits fell 8.9
percent to an annual rate of 854,000, which shows that construction may
continue to fall in the months ahead, according to the Wall Street Journal …Full Story