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Housing starts tumble

WASHINGTON (AP) — Housing construction in the United States plunged to the lowest level in more than six years in October as the once-booming housing market slowed further.The Commerce Department reported yesterday that construction of new single-family homes and apartments dropped to an annual rate of 1.486 million units last month, down a sharp 14.6 percent from the September level.

The decline, bigger than had been expected, was the largest percentage decline in 19 months and pushed total activity down to the lowest level since July, 2000.

Applications for new building permits, seen as a good sign of future plans, fell for a ninth consecutive month, the longest stretch on record. The October drop was 6.3 percent, pushing permits down to an annual rate of 1.535 million units, the slowest pace in nine years.

David Seiders, chief economist for the National Association of Home Builders, said he believed construction would fall by about 13 percent this year as builders scramble to deal with plunging sales.

“We had an unsustainable boom in housing in both 2004 and 2005 and now we have a correction on hour hands,” he said.