New homes construction dropped to its lowest level. The Commerce Department reported that new homes construction fell 4.5 percent in October. It was four consecutive months that new homes construction fell.  Construction declined to an annual rate of 791,000 units from 828,000 units in September.

The results were the lowest recorded in 50 years. Previously, the slowest pace had been in January 1991, when the country was in recession and going through a similar housing correction.

With the slow down, analysts see that the number of unsold homes will fall quickly.

Embattled homebuilders are now building new homes and apartments at its slowest pace according to the Commerce Department report. New building permits, which indicate future construction activity, also dropped to the lowest pace on record.

The drops in construction last month was led by the Northeast with 31 percent decline. Construction of single family homes in the region fell to a new record low. In the Midwest, they experience a 13.7 percent fall while construction rose 7.5 percent in the West and 1.5 percent in the South.

Applications for building permits, considered a good indicator of future construction activity, dropped by 12 percent in October to an annual rate of 708,000 units. It is the lowest level on records since early 1960. New permits for single-family houses declined 14.5 percent to 460,000, the weakest since February 1982.

The U.S. housing recession has set off harsh economic problems and builders have sought for further action by the government. Builders' sentiment about market conditions fell to a record low in November.