U.S. home construction fell 4% in July

WASHINGTON — U.S. housing starts fell 4.0% in July, driven by a decline in the construction of apartment buildings.

The Commerce Department says that housing starts slipped last month to a seasonally adjusted annual rate of 1.19 million units. So far this year, housing starts have declined 3.1%. While there was a slight 1.3% uptick in the construction of single-family homes, the gain was offset by a 17.2% drop in the apartment category.

The results suggest a lack of construction relative to demand from would-be home buyers, which may make it difficult for them to capitalize on the recent decline in mortgage rates.

Applications for housing permits increased 8.4% to an annual rate of 1.34 million. Apartment complexes drove the increase.