Housing construction slumps 7% in July to 1.53 million units

Home construction fell a sharp 7% in July as home builders struggled to cope with a variety of headwinds

WASHINGTON -- Home construction fell a sharp 7% in July as home builders struggled to cope with a variety of headwinds. The decline in July put home construction at a seasonally adjusted annual rate of 1.53 million units, the Commerce Department reported Wednesday. Applications for building permits, which can forecast future activity, rose 2.6% in July from the June level to an annual rate of 1.64 million units. A survey of home builder confidence saw expectations fall sharply in August to the lowest level in a year as builders struggled with high construction costs, supply shortages and rising home prices.