WASHINGTON (AP) — U.S. builders broke ground on slightly fewer homes in July than June. But in a hopeful sign for future construction, applications for building permits rose to their highest level since August 2008.

The Commerce Department said Thursday that single-family homes and apartments started in July dipped 1.1 percent to a seasonally adjusted annual rate of 746,000. That’s down from June’s rate of 754,000, the fastest since October 2008.

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