5.9% rise on US Housing Starts

Housing starts have increased by 5.9% in September, to an annual rate of 1.772,000 according to data released by the Census Bureau.This increment has been stronger than expected which suggests than the cooling in the housing market is not as serious as it was feared. Nevertheless, building permits decreased by 6.3% to an annual rate of 1,617.000 suggesting yet some downside for the starts. It seems that the housing correction is still underway, but is not as severe as tha one of 1991 when starts decreased by 40%, so far they´ve fallen 26% from the January 2005 peak.