U.S. Housing Starts and Building Permits Plunge to Multi-Decade Lows

U.S. housing starts fell to 817K in September to reach its lowest level in 26 years as mounting inventory of unsold homes paired with falling property values deferred demands for building activity. In addition, building permits slipped to 786K from a revised reading of 857K in August to fall to its lowest level since 1981. The data suggests that economic activity will remain subdued for the rest of the year as the downturn in the housing sector deepened even before the recent turmoil in the global financial market, and has spurred increased bets that the FOMC will in fact deliver a rate cut on October 29^th.

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