US Housing Construction Continues to Decline in March.

Housing starts in the US fell by 0.8% in March to an annual rate of 1.42 million units, while building permits tumbled 8.8% to an annualized rate of 1.41 million units, indicating that the housing market remains depressed. Despite a retreat in mortgage rates, builder confidence that prospective buyers will return is still low, possibly a cause of lower home construction activity. Limited inventory has also bolstered demand this month, but the interest rate-sensitive housing market has borne the brunt of the Federal Reserve's aggressive campaign to tighten policy and slow the economy.