Housing Starts And Building Permits Fall To Record Lows In October

Housing Starts (Oct) Actual 0.79M, Expected 0.78M, Previous 0.82M

Building Permits (Oct) Actual 0.79M, Expected 0.77M, Previous 0.81M

Release Explanation: This report covers the number of new residential Starts and residential Building Permits issued each month, reported on an annualized basis. The reports act as leading indicators on housing market sentiment and the overall economy because they have an important influence on new & existing home sales, employment, retail sales, durable goods orders and GDP as new additions are fitted out with fixtures and fittings. A currency will eventually be affected by these numbers as they are the first phase in the home construction process.

Trade Desk Thoughts: Housing starts declined 4.5% in October to a 0.79M annual rate the Census Bureau said today in Washington, the lowest annual pace on record. In the year to October, housing starts declined 38%. Single-family starts declined 3.3% in October. Permits for new housing units fell 12.0% in October to a 0.71M annual rate which was also the lowest annual pace on record, 40% below the number of permits issued in October 2007.

"Unfortunately, there just does not seem to be a bottom for the housing market anywhere in sight," said Matthew Carniol, chief currency strategist at TheLFB-forex.com. "With credit remaining relatively expensive and difficult to obtain and unemployment rising, don't expect to see housing improve until prices fall at least another 10-15%."

Forex Technical Reaction: S&P futures have risen off their lows of the session and the dollar remains lower against the yen, euro and pound.

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