The Federal Reserve doesn’t need another excuse to cut interest rates, but the economic report du jour brought a fresh reason anyway.
New housing starts continued tumbling last month, the Census Bureau advised this morning. Privately-owned housing starts fell 14% in December to levels last seen in 1991. Building permits crumbled again last month, too. Since permits are considered a measure of future activity, the ongoing slide here casts a pall over the outlook for housing.
“These figures confirm that the housing recession continues to deepen,” Mike Larson, a real estate analyst for Weiss Research, told CNNMoney.com. “Slumping consumer confidence and tighter lending standards have already taken their toll on demand, and the broader economic slowdown we’re starting to see unfold now threatens to make a bad situation worse.”