1. New Residential Construction  Published by: Bureau of the Census  Frequency: monthly  Period Covered: prior month  Volatility: moderate  Market significance: moderate to high  Web site: www.census.gov

2. What is it?  Tracks how many new single-family homes or buildings were constructed throughout the month.  Most of the housing start data is collected through applications and permits for building homes. The housing start data is offered in an unadjusted and a seasonally adjusted format.  Information on housing starts and building permits is collected on separate surveys.  Starts and permits are classified by the number of units and by regions. The regions are northwest, south, midwest, and west.  Unit categories include single-family and multifamily housing.

3. What is it in the report?  Information about: Building permits: Privately owned housing units authorized by building permits Building permits: Privately owned housing units authorized by building permits Housing starts: Privately owned housing startsHousing starts: Privately owned housing starts Housing completions: Privately owned housing completions.Housing completions: Privately owned housing completions.

4. Why is it important?  Key release from the supply side, its importance rises around turning points in the business cycle.  Permits is a leading indicator of economic activity.  Housing is an important sector of the economy. Housing accounts for about 42% of a household’s budget.

5. Keys to Interpreting the Data  Focus in the single-family sector, it dominates the residential housing market.  Pay close attention to regional changes.  Be aware of weather anomalies.  Notice that housing starts and building permits present a cyclical behavior.

6. Latest Release BUILDING PERMITS   Privately-owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,544,000. This is 0.8 percent (±1.0%)* above the revised February rate of 1,532,000, but is 25.9 percent (±0.9%) below the March 2006 estimate of 2,085,000.   Single-family authorizations in March were at a rate of 1,114,000; this is 1.4 percent (±0.9%) above the February figure of 1,099,000. Authorizations of units in buildings with five units or more were at a rate of 358,000 in March.

7. Latest Release HOUSING STARTS   Privately-owned housing starts in March were at a seasonally adjusted annual rate of 1,518,000. This is 0.8 percent (±11.3%)* above the revised February estimate of 1,506,000, but is 23.0 percent (±5.4%) below the March 2006 rate of 1,972,000.   Single-family housing starts in March were at a rate of 1,218,000; this is 2.0 percent (±10.5%)* above the February figure of 1,194,000. The March rate for units in buildings with five units or more was 262,000.

8. Latest Release HOUSING COMPLETIONS   Privately-owned housing completions in March were at a seasonally adjusted annual rate of 1,632,000. This is 0.7 percent (±7.7%)* below the revised February estimate of 1,643,000 and is 25.9 percent (±5.2%) below the March 2006 rate of 2,203,000.   Single-family housing completions in March were at a rate of 1,329,000; this is 1.5 percent (±9.3%)* above the February figure of 1,309,000. The March rate for units in buildings with five units or more was 264,000.

9. Historical Data

10. Data Analysis  Based on the information from this indicator, we conclude: Housing market is clearly cooling off. Housing market is clearly cooling off. We do not foresee inflationary pressures from the housing market. We do not foresee inflationary pressures from the housing market. Since this is considered a leading economic indicators, we anticipate no improvement in economic performance in the near future. Since this is considered a leading economic indicators, we anticipate no improvement in economic performance in the near future.