Housing Construction Hits Five-Month Low

Builders, concerned that rising mortgage rates will choke off sales, trimmed new home and apartment construction in May to the lowest level in five months.

The Commerce Department reported housing starts fell 4.7 percent, to a seasonally adjusted 1.43 million annual rate, and erased the 4.6 percent gain in April.

Starts were down in every region except the South.

Analysts said the weaker-than-expected report suggested a moderating economy and eased fears the Federal Reserve would boost interest rates next month to slow growth and cool any inflationary pressures.