(Greenwich, 9/19/2006) U.S. housing starts fell 6% in August to an annual rate of 1.665 million, the lowest since April 2003, according to the Commerce Department. Housing starts have fallen in six of the past seven months and have dropped 19.8% compared to August 2005. Building permits fell 2.3% to 1.722 million, the lowest since August 2002. Permits have fallen seven months in a row, down 21.9% from a year ago. Read the full report.
It’s no secret to anybody now that home prices are falling. This means the only housing starts from here on will be ones that already have bullet-proof financing. Look for more weak housing numbers ahead. Good news for lower interest rates ahead.
JR
