Highlights
Housing starts fell in January following an artificial boost in December from unseasonably warm weather. January housing starts declined 14.3 percent to a 1.408 million annual rate after a 5.0 percent boost in December. January was below the consensus forecast of 1.60 million. Home building is 37.8 percent below its year-ago rate of 2.265 million thanks to a backlog of supply. Sales of both single family and multi-family homes were down 11.2 percent and 24.1 percent respectively.

Regionally, starts were down in the West, down 15.6 percent for January; the Midwest, down 15.2 percent; and in the South, down 11.8 percent. Starts rose 8.9 percent in the Northeast.

Housing permits were more resilient than starts - they are probably not as impacted by monthly swings in weather. Overall permits declined 2.8 percent in January to a 1.568 million unit pace after rising 6.6 percent the month before. In the latest month, single-family permits fell 4.0 percent while multifamily permits edged up 0.4 percent. The greater stability in permits over the last two months may indicate a more accurate trend in housing - suggesting that this sector is leveling off.

Today's report is difficult to read with 100 percent certainty due to the large swings from weather effects this time of year. Housing is still soft but probably not as much as today's data suggests. It will take a couple of more months to see the true trend. Although not always true, the permit data may more accurately reflect the true picture - one in which housing has or is bottoming. Nonetheless, the bond market will like the fact that the economy is not overheating and equities may see the numbers as Fed friendly and positive overall.

2007 Release Schedule

Released On: 1/18 2/16 3/20 4/17 5/16 6/19 7/18 8/16 9/19 10/17 11/20 12/18 Released For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov