Another dismal month for housing starts

"The housing market is not only bad, but still missing low expectations." That from a Cantor Fitzgerald analyst on just how awful the residential housing sector is. Even the most pessimistic forecasts are not being met. For better of for worse, new housing construction has been one of the most important sectors of the economy simply because so much that goes into building and furnishing a house creates jobs at a faster rate than any other economic activity in our economy. And when that sector is sick, it means that the jobs picture won't be getting any better either. Reuters: Housing starts decreased the most since April, down 5.0 percent to a seasonally adjusted annual rate of 571,000 units, the Commerce Department said on Tuesday. Offering a glimmer of hope for the sector, permits for future construction rose 3.2 percent. Economists polled by Reuters had forecast housing starts to fall to a 590,000-unit rate in August. Housing starts are at less than a third of their peak during...(Read Full Post)