U.S. consumer sentiment fell further than expected in late October to its lowest in more than a year as concerns about the housing slump darkened the economic outlook, a survey released today showed.

The Reuters/University of Michigan Surveys of Consumers said its late October figure on consumer sentiment was 80.9, down from the month’s preliminary reading of 82 and the final September reading of 83.4. It was the lowest reading since May 2006 when the index stood at 79.1.

Economists polled had expected the final October figure to remain unchanged from early in the month at 82.

The decline in sentiment was driven by eroding expectations about future economic conditions. The gauge that measures these expectations dropped to 70.1 from the preliminary reading of 71.6 and September’s 74.1 to its lowest in a year, the survey group said.

The current decline was driven by concerns about falling home prices, the group said.