commercial loan news

March 19, 2008

U.S. Housing Starts Dropped In February

SOURCE: Bloomberg

The decline in starts was led by a 6.7 percent slump in construction of single-family homes. February's 707,000 pace was the weakest since January 1991. Work on multifamily homes, such as townhouses and apartment buildings, increased 14 percent to an annual rate of 358,000 in February.

Some areas of the housing market are still doing well or holding even though. The Northeast saw total housing starts drop 28%. Single family home starts in the West increased by 5.1%. Total construction rose by 3.9% in the South and remained unchanged in the Midwest.

The Feds are continuing to lower interest rates. They are putting inflation aside and focusing on stimulating the economy. It is felt that with the Feds reducing the overnight loan rate to banks to 2.25% that will help to spur the economy.

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