This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Housing Starts Fall 11.7% in October

WASHINGTON ( TheStreet) -- Homebuilders began construction on 11.7% fewer homes in October, far worse than the expected contraction rate, though applications for building permits edged up 0.5%, pointing to an uptick in future homebuilding activity.

The Commerce Department said early Wednesday that housing starts came in at a seasonally adjusted annual rate of 519,000 in October, after a downwardly revised rate of 588,000 for September and worse than the rate of 600,000 economics expected, according to consensus estimates listed on Briefing.com.

The figure compares with the originally reported pace of 610,000 reported for September .

Applications for building permits increased 0.5% to a seasonally adjusted annual rate of 555,000, compared with the revised September rate of 547,000. October's rate remains 4.5% lower than in the year-earlier month.

Building permits are viewed as an indication of future home construction.

Stocks in the homebuilder sector were mixed in premarket trading Thursday ahead of the report on housing starts and building permits. The SPDR S&P Homebuilders (XHB), an exchange-traded fund that tracks the sector, was 0.5% lower, while the iShares Dow Jones US Home Construction (ITB) ETF was flat.

Among individual builders, D.R. Horton (DHI - Get Report) fell 0.5%, Lennar (LEN - Get Report) 0.5%, Toll Brothers (TOL - Get Report) 0.5%. KB Home (KBH) and NVR (NVR) were flat. PulteGroup (PHM - Get Report) bucked the trend, gaining 1.9% in premarket trading.

-- Written by Miriam Marcus Reimer in New York.



>To contact the writer of this article, click here: Miriam Reimer.

>To follow the writer on Twitter, go to http://twitter.com/miriamsmarket.

>To submit a news tip, send an email to: tips@thestreet.com.

READERS ALSO LIKE:



>>See our new stock quote page.

Get more stock ideas and investing advice on our sister site, Stockpickr.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
XHB $35.73 0.34%
ITB $27.48 -0.29%
BZH $18.14 -0.44%
DHI $28.04 -0.81%
LEN $48.23 -0.64%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs