National Business Digest

NATION

Home construction dips to lowest level in 17 years

WASHINGTON — Construction of new homes and apartments fell to the lowest level in 17 years last month, showing the country is still gripped by a severe housing downturn that has triggered billions of dollars of losses and is reshaping the structure of U.S. finance.

The Commerce Department reported Wednesday that housing construction dropped a surprise 6.2 percent last month to a seasonally adjusted annual rate of 895,000 units. That’s the slowest building pace since January 1991, another period when housing was going through a painful correction.

Interest rates on mortgages rise again

NEW YORK — Homeowners rushed to take advantage of last week’s drop in interest rates after the government’s takeover of Fannie Mae and Freddie Mac, but rates are rising again on investor fears over the eroding conditions in financial markets.

A minirefinance boom started last Thursday but ended early Monday, said Pava Leyrer, president of Heritage National Mortgage in Michigan. The average rate on a 30-year, fixed rate mortgage was 6.14 percent Wednesday, up from 6.02 percent last week after the government bailed out Fannie and Freddie, according to HSH Associates.

Associated Press