Housing Starts Rose
The housing starts rose to 223,200 units in October, 2006, from 209,000 units in September, 2006.
The rise in housing starts in October reflects a rebound in the volatile multiple starts segment, which registered a two-year low in September. Single starts, the bellwether component of the new home market, fell to their second lowest level of the current year.
Despite the increase in October, the pace of housing starts has been slower since August compared to the beginning of 2006. This is consistent with our view that residential construction will decrease gradually between now and the end of 2007.