MNI DATA ANALYSIS: US Housing Starts Rise To 1.319m SAAR>

--March Building Permits Up 2.5% To 1.354 Mln SAAR

--February Starts Revised Up To 1.295 Mln From Previous 1.236 Mln

By Kevin Kastner

     WASHINGTON (MNI) - The pace of housing starts rose by 1.9% to a 

1.319 million seasonally adjusted annual rate in March, ahead of 

expectations for a 1.258 million rate after dipping modestly to a 

downward revised 1.295 million pace in February, data reported by the 

Commerce Department Tuesday morning showed.  

     Housing starts rose by 22.4% in the Midwest and 0.8% in Northeast. 

These were partially offset by a 0.6% decline in the large South region 

and a 1.5% decline in the West region. 

     Housing starts of single-family homes fell by 3.7% in March after 

gains in four of the last five months. Starts of multi-family homes rose 

by 14.4% after a 10.2% decline in February, based on an MNI calculation. 

--OUTLOOK STRONGER FOR NEAR-TERM BUILDING 

     Building permits rose by 2.5% in the month to a 1.354 million rate 

after falling to 1.321 million in February. Homes permitted but not 

started fell 1.9%, but would be expected to rebound next month. As a 

result, starts could see solid gains in the coming months. Single-family 

permits authorized fell 5.5%, while multi-family permits were up 19.0%. 

     The NAHB index for March reported on Monday showed another modest 

decline in builder confidence, but remained elevated. 

     The first quarter housing starts pace, which averaged 1.318 

million, was ahead of the 1.256 million fourth quarter average. Permits 

averaged 1.351 million in the first quarter, up from the 1.306 million 

average pace in the fourth quarter. The data are a positive factor for 

residential fixed investment in the upcoming advance look at first 

quarter GDP. 

     Homes under construction rose 0.3% to their highest point since 

2007. Completions fell by 5.1%, but could see a rebound next month due 

to the strong starts readings and the high level of homes under 

construction. As a result, new home supply maintain its upward momentum. 

     ** MNI Washington Bureau (202) 371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]