Housing starts tumble to 14-year low

Can it get any worse? Construction of new homes plunged by a bigger-than-expected amount in September, reflecting the deepening troubles in housing.

Groundbreaking for new U.S. homes and permits for future building both hit a 14-year low last month. The Commerce Department reported on Wednesday that housing construction fell by 10.2 percent last month to a seasonally adjusted annual rate of 1.191 million units. Applications for building permits, considered a good sign for future activity, also fell sharply in September, dropping by 7.3 percent to 1.226 million units.

Housing sales, which had set records for five straight years, have been slumping since 2006, a downturn that has intensified in recent months as mortgage lenders have tightened standards for getting loans in response to soaring defaults.