U.S. housing construction plunged to the lowest level in more than six years in October.

Construction of new single-family homes and apartments dropped to an annual rate of 1.486 million units last month, down a sharp 14.6% from the September level, the U.S. Commerce Department reported tody.

The decline, bigger than expected, was the largest percentage decline in 19 months and pushed total activity down to the lowest level since July 2000.

Applications for new building permits, seen as a good sign of future plans, fell for an eighth consecutive month, declining 6.3% to an annual rate of 1.535 million units.

There were signs that the steep plunge in housing was beginning to level off.

The monthly survey of builder sentiment edged up slightly in early November following another small increase in October. It marked the first back-to-back improvement in builder sentiment since June 2005.

The level of building activity in October was 27.4% below activity in October 2005, the biggest year-over-year decline since March 1991.

Construction of single-family homes fell by 15.9% in October from the seasonally adjusted September level, dropping to an annual rate of 1.177 million units. Construction of multi-family units dropped by 9.1% to an annual rate of 309,000 units.

The drop in construction was led by a 26.4% decline in the South. Construction fell by 11.7% in the Midwest and was down 2.1% in the West.

The only region showing strength was the Northeast, where construction jumped by 31%.