Housing Starts - Maybe a Glimmer of Hope?

Some news from the housing sector...Housing Starts fell 12.8% to a seasonally adjusted rate of 458,000 units, well below expectations of 520,000 and the lowest on record since January of 1959. Building Permits, which help to predict future home construction, also fell to a record low of 494,000 units, down 3.3% from March. These numbers are weak, but in the long run this could be a good thing, because with fewer new homes being built, it will give the housing market opportunity to buy up existing inventory.

Now here is the glimmer of hope I promised...  Interestingly enough, the National Association of Home Builders reported yesterday that their Builder Confidence Index was at an eight month high. Perhaps builders are feeling better about their future prospects, given the smaller competitive landscape they are now operating in.