MNI DATA IMPACT: US February Starts Pace Falls To 1.162m SAAR>

--February Building Permits Fall 1.6% to 1.296m SAAR

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - The pace of housing starts fell by -8.7% to a 

1.162 million seasonally adjusted annual rate in February, below 

expectations for a 1.205 million rate according to an MNI survey of 

analysts and a 1.210 million rate according to the Bloomberg consensus, 

data reported by the Commerce Department Tuesday morning indicated. 

     Here are some of the key takeaways from the data released Tuesday: 

     -Housing starts fell 29.5% in the Northeast, were down 18.9% in the 

West, up 26.8% in the Midwest, and down by 6.8% in the South. 

Single-family housing starts fell by 17.0% in February after a 19.2% 

increase in the previous month, while multi-family starts rose by 17.8% 

in February, based on an MNI calculation. This followed a 7.1% decline 

in the previous month. 

     -Building permits fell by 1.6% in the month to a 1.296 million rate 

after a 0.7% decline to 1.317 million in January. This decline was 

driven by multi-family permits, and was accompanied by a flat reading in 

single-family permits. Homes permitted but not started fell by 1.5% in 

February, suggesting housing starts could fall further in the near 

future. 

     -The first quarter starts average, including just January and 

February, was above the 1.185 million fourth quarter average after all 

revisions were included. The first quarter permits pace was at 1.307 

million, just above the 1.304 million fourth quarter average. Homes 

under construction fell by 0.9%, but completions were up 4.5%. 

     ** MNI Washington Bureau: 202-371-2121 **

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