Housing numbers most dismal since World War II

WASHINGTON -- The nation is on track to build fewer homes this year than at any time since the end of World War II, adding to the nation's economic woes.

A monthly survey by the National Association of Home Builders showed sentiment among home builders hit a record low in early October. David Seiders, chief economist for the group, said builders are being hit by a double whammy from the financial turmoil: It's harder for them to get loans to pursue new houses, and it's more difficult to sell those they do build. He forecast that builders will keep slashing production in coming months, with construction starts for new homes and apartments totaling just 936,000 this year, the lowest level since 1945. "The builders are telling us that the financial crisis is really hurting because people justifiably have no idea where things are going," Seiders said

The Commerce Department said Friday that construction of new homes and apartments dropped by a bigger-than-expected 6.3 percent in September to an annual rate of 817,000 units, the second-weakest performance in government statistics dating back to 1959. In a bleak sign of future construction, applications for new building permits fell a sharp 8.2 percent to an annual rate of 786,000 units, the weakest level in more than 25 years.The government also sharply revised lower its construction data for July and August. That was after dismal news earlier this week that retail sales fell by 1.2 percent in September.