New home construction fell 7 percent in July as builders tackled massive backlogs over newer contracts, according to data released yesterday by the Commerce Department, The Hill reported. Housing starts for privately owned homes hit a seasonally adjusted annualized rate of 1.53 million in July, falling below the revised June rate of 1.65 million while remaining 2.5 percent above the same month last year. Single-family housing starts were down 4.5 percent, and starts on homes with five or more units plunged 13.6 percent. Home sales and construction have fallen steadily throughout the summer after surging lumber prices earlier in the year drastically increased the cost of building homes. While lumber prices have fallen closer to historic levels, home prices have continued to break record highs as builders fight through other supply issues and backlogs.
