Housing starts up but permits plummet

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) .