Housing construction plunged in August, falling to the lowest level in more than three years as the once-booming industry showed further signs of a dramatic slowdown.

The Commerce Department reported Tuesday that construction of new homes and apartments fell by 6 percent, the third consecutive decline and a much bigger setback than analysts had been forecasting.

It's those darn rose-colored glasses economists were wearing, I tell 'ya. Them good ole boys at the fFederal Reserve best take them things off, if'n they want to avoid a recession.

The central bank is trying to slow the economy enough to keep inflation under control while at the same time not bring on a recession. However, the sharp drop in housing raised concerns about a more severe slowdown.

Here's the thing There are numerous people that have been saying there is a slowdown for months. People in the industry have notice the changes for well over a year, and very few economists outside of the industry (read our government) bothered to pay attention.

David Seiders, chief economist at the National Association of Home Builders, said the organization's survey of builder sentiment declined in September for the eighth consecutive month and now stands at its lowest point in more than 16 years.

"We have been warning that the housing downswing seems to be deeper than the Fed has been expecting and that the downside risks to housing are substantial," Seiders said.

The market is saturated with new and old homes, even here in Knoxville, TN, and by the looks of things, that downard slide has a way to go.