Wednesday, February 18, 2009

Housing Starts Plunge almost 17%


WASHINGTON (MarketWatch) - 8:30

Construction on new U.S. housing units plunged 16.8% in January to a seasonally adjusted annual rate of 466,000, the Commerce Department reported Wednesday, far below the weakest levels of the post-World War II era. Housing starts have dropped at double-digit rates for three straight months. At this rate, starts would fall to zero by the end of the year. Starts are down a record 56% in the past year and are down 79% from the peak three years ago. Housing starts in January were much worse than expected. Building permits, less volatile than the housing starts data, fell 4.8% to a seasonally adjusted annual rate of 521,000, also a record low.

===

More signs of the times. Don't expect the picture to get brighter. We have not seen the low yet for housing.

Barlow

1 comment:

Carl said...

Today Bank of American came out and said that they were seeing the 30-year mortgage rate at 4.25% by end of 2009. Good for buyers and refinance. But I couldn't help but thinking how much worse can the housing market be.