According to the latest information released, new house builds in the United States fell in the month of February and building permits also fell. They fell to the lowest level seen in more than 17 years.
This means that home construction projects have continued to fall. The annual rate of 1.065 million is down 0.6% from the month of January. This was provided through the report released by the Commerce Department.
Permits are a very important indication for the industry. They are seen as the forecasting of what is to come in the future. With these down 7.8%, this signals future trouble for the housing market as well.
As reported by Bloomberg, Joseph LaVorgna who is the chief U.S. economist at Deutsche Bank Securities Inc, which is out of New York, said, "The recession is housing, which will now extend to nine quarters assuming a contraction this quarter, means that inflation in the Fed's mind is of secondary importance." This after the Fed announced a cut in the key lending interest rate by 0.75 percentage points.
CNN Money reported the same news and outlined the further problems this has. As reported by CNN Money, Mike Larson who is the real estate analyst for research firm Weiss Research said, "Single family is the core of the housing market and it appears to be deteriorating. The construction market is still weak. The market is struggling to find the level of starts that will be in line with demand."
