U.S. housing starts took an unexpected bad turn in October to record an annualized rate of only 529,000 units versus their almost 600,000-unit level of the previous four months. Their lowest level at any time in the past several years of decline was 479,000 units in April of this year.

Tax credit extended

The latest month-to-month drop was probably caused by uncertainty over the future of the first-time homebuyers’ tax credit. It was due to run out on Nov. 30. Builders were being cautious in anticipating that demand for new housing would be adversely affected. The Obama administration has just recently extended the program through April 2010. Furthermore, some current homeowners will also receive benefits under the new …