Housing Starts In U.S Fell in February

According to Bloomberg, housing starts in U.S. fell 5.9 percent in February as severe snowstorms and record snowfall hampered construction in various parts of the country.

Fewer building permits issued suggest stagnating demand. Increasing foreclosures made it difficult to clear inventory and discouraged new home construction.

Ellen Zentner, senior macro-economist at Bank of Tokyo-Mitsubishi UFJ Ltd., said that the report reflects bad weather effect. He said that the housing market has found enough support and looks to be stabilized.

The number of homes under construction fell to a record low of 492,000 in February, down 2.2 percent.