Housing starts up but permits plummet
Construction of new homes rebounded in October, increasing for the first time since June.
Construction of new homes rebounded in October, increasing for the first time since June.
But housing starts for October are down 16.4%, compared with the level of 1.47 million homes built in October 2006.
Housing starts increased 3% to 1.229 million, after falling 11.4% in September to 1.193 million, according to a Department of Commerce report.
The number of building permits issued in October fell 6.6%, marking the lowest level since 1.174 permits were issued in July 1993.
The number of permits issued in September fell 4.6% to 1.261 million.
Single-family housing starts in October fell to 884,000, which is 7.3% below the September figure of 954,000.
The report comes one day after the preliminary National Association of Home Builders/Wells Fargo Housing Market index — a measure of home builders’ confidence — stayed at the lowest reading since the index was first measured in January 1985 (InvestmentNews, Nov. 19) .
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