US housing starts dive in April

| May 17, 2011
US housing starts dive in April

The Commerce Department has today revealed US housing starts slumped in April a�� much worse than forecast.

Housing starts dived 10.6% in the month to a seasonally adjusted annual rate of 523,000 units, analysts had expected an annual rate of 563,000.

In the meantime, applications for building permits, a barometer of future home construction, also fell, by 4%, to annual rate of 551,000 units.

Demand for houses in the US continues to be weak with potential buyers struggling to obtain mortgages.

Furthermore, the housing market is weak due to a glut of unsold and repossessed properties.

Todaya��s data further highlights the fragility of the housing market with many suggesting it is holding back the recovery of the worlda��s largest economy.

Meanwhile, the news sent oil prices sliding with Brent crude down $2.10 to $108.75 after rising above $111 earlier today.

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