WASHINGTON -- The U.S. housing market turned sour in September as sales of new single-family homes tumbled despite the last few months' steady decline in mortgage interest rates, adding to evidence that the economy is losing momentum.

Sales of new homes fell 12.9% from 512,000 to 446,000, the Commerce Department reproted yesterday. That is the lowest level since January, when the economy was in the middle of the recession.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.