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Housing Starts Plummet to 14-Year Low

But modest consumer price hike soothes inflation fears

By Jonas Oransky, Newser Staff

Posted Oct 17, 2007 9:49 AM CDT

(Newser) – New homes starts fell to their lowest level in 14 years last month, plunging 10%—to an annualized rate of 1.191 million—after expectations of a 4.2% decline. The number followed a 3.2% drop in August, the Wall Street Journal reports. A homebuilders' confidence gauge registered its lowest number since its 1985 inception. Housing continues to get worse and worse,'' a Deutsche Bank economist told Bloomberg. The contraction will go on into at least the middle of next year."

In sunnier economic news, the consumer price index rose only mildly, giving the Fed a freer hand to cut interest rates again without fears of triggering inflation. The 0.3% September rise reversed a 0.1% August decline, though the critical core CPI—which doesn’t factor volatile food and energy values—but consistent at 0.2% over the 2 months.

Construction workers frame a new house Friday, Aug. 31, 2007 in Gilbert, Ariz. Softening of the economy is adding red ink to Arizona state government's projected bottom line. The Legislature's budget... (Associated Press)

Retailers Post Lower Same-Store Results For September (Getty Images)

Workers toil on a condominium complex going up in the west Denver suburb of Lakewood, Colo., on Monday, Sept. 10, 2007. The Commerce Department reported Wednesday, Sept. 19, 2007 that construction of... (Associated Press)

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Housing Starts Plummet to 14-Year Low

But modest consumer price hike soothes inflation fears

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Fed: Don't Expect Rate Hikes Until 2014

Benchmark rate is probably staying put for a long time

Fed Holds Rates at Record Lows

Bernanke & Co. want to keep driving recovery

Kiss Cheap Credit Goodbye

For those who can't remember 1981, rates are headed up

Fed Keeps Rates Low

But central bank sees hope amid slow recovery

Fed Leaves Rate at Record Low

Says it wants to foster recovery

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But modest consumer price hike soothes inflation fears

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OTHER STORIES ON OUR RADAR

Federal Reserve • Consumer Price Index • homebuilders • interest rate • housing starts • confidence

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Fed: Don't Expect Rate Hikes Until 2014

Benchmark rate is probably staying put for a long time

Fed Holds Rates at Record Lows

Bernanke & Co. want to keep driving recovery

Kiss Cheap Credit Goodbye

For those who can't remember 1981, rates are headed up

Fed Keeps Rates Low

But central bank sees hope amid slow recovery

Fed Leaves Rate at Record Low

Says it wants to foster recovery

About Us

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Newser By Users

Community

Site Maps

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More News

What is Newser?