BOSTON (MarketWatch) -- Home-builder stocks fell sharply Wednesday after the Commerce Department reported starts of new U.S. homes in August fell 6% to the lowest rate in 17 years. In another sign of the malaise gripping the residential market, the number of new building permits for single-family homes dropped to a 26-year low. An exchange-traded fund tracking home builders, iShares DJ U.S. Home Construction , was down more than 6% in midday trading. ...