Construction of new homes plummeted in April

WASHINGTON - Construction of new homes plummeted in April, another troubling sign for the battered housing market.

The Commerce Department says construction of new homes fell 10.6 percent in April from March to a seasonally adjusted annual rate of 523,000 homes. That's down nearly 25 percent from one year ago and less than half the 1.2 million homes per year that economists consider a sign of a healthy market.

Tighter lending standards and millions of foreclosures are weighing on the housing sector, which is in the midst of one of its worst years in history.