The number of housing constructions in the USA fell by 6% in August to a seasonally adjusted annual rate of 1.665m units, according to the Commerce Department.

It means that the number of new homes being built has now fallen by 19.8% compared to the same time last year.

David Pressly, president of the National Association of Home Builders (NAHB) said: “Builders have been reporting a weakening in demand for some time and appropriately are cutting back on new supply in order to meet current market conditions and control their inventories.

“Many builders also are offering substantial incentives to bolster sales and limit cancellations, and with mortgage rates still very favourable, now is a good time to buy.”