Despite frantic efforts of paramedics, he later died from his injuries in The Princess Royal Hospital in Telford.
West Mercia Police have launched an investigation into the tragedy and the pet dog has been destroyed. No arrests have been made.
Police and ambulance crews were called to the semi-detached house just after 8am yesterday. Forensic teams spent much of the day at the house.
Harry's mother Mikayla, 19, was staying with her parents, Gordon Bell, 42, and Teresa, 40, when the attack occurred.
Nigel Pitchford, 71, said: "It's very sad news - the whole street is shocked to hear what has happened. They only brought the baby home from hospital a few days ago. The dog is only little, but it is very vicious.
"I tried to post a Christmas card through their letterbox last year, and it went for my hand as I posted it through. It was only small but a vicious little thing."
Officers were now awaiting the result of a post-mortem examination and have launched an investigation to establish the precise circumstances of the death.
"Our investigation is ongoing but it appears that the baby died as a result of a dog bite," said Detective Chief Inspector Neil Jamieson.
"The dog was a family pet - a Jack Russell - and this animal has now been put down.
"A post mortem will be taking place to establish the exact cause of the baby's death but at this stage it does appear to be a tragic accident."
A spokesman added: "Police and ambulance were called to an address in Woodside Road, Ketley, about a young baby that was unwell,"
"He was taken to the Princess Royal Hospital in Telford by paramedics but died soon after. As in all cases of the death of a young child, West Mercia Police has launched an investigation to establish the exact circumstances."
