April 21: March Housing Starts Leap; Building Permits Fall
Housing starts jumped 8% in March, seasonally adjusted, after February's revised 10% drop, the government reported. Building permits slumped 7% in March to a seven-month low at a seasonally adjusted annual rate. Both figures were affected by big swings in the weather. Permits for the first three months of 2003 are up 3% from the first quarter of 2002, with similar rises in permits for single-family and multi-unit structures.
Year-to-date housing starts are up by 2%. Builders remain optimistic, according to the latest monthly survey from the National Assn. of Home Builders. This week's average 30-year fixed mortgage rate is 5.82%, close to the 40-year low set last month and more than a point below year-ago levels. These signs point to continued strong housing starts and sales.