Housing Starts Slump in January

New construction falls almost 8%, while permits for new projects also drop from December's level.
By TSC Staff ,

Heavy weather kept a lid on the housing industry in January.

The government said housing starts, or new construction, fell 7.9% to an annual rate of 1.90 million units, while building permits dropped 2.8% to 1.89 million units.

Both figures fell short of economists' forecasts, although they were well above January 2003 levels.

Economists expected housing starts of 2 million units and building permits of 1.91 million units.

Unseasonably cold and snowy weather slowed work in the Northeast and Midwest.

Both starts and permits for December were revised lower.

In another report, the Mortgage Bankers Association said its index of loan applications for purchases and refinancings rose 4.9% in the week ended Feb. 13, as 30-year and 15-year mortgage rates dipped by 14 and 10 basis points, respectively.

Refinancing activity outpaced purchase applications. Overall, the index, however, was down more than 22% from a year ago.

Loading ...