Gains in Housing?

With the rise of debt in this country, it has become imperative to understand all the possible financial signs, both good and bad. While the subprime conundrum has been spiraling out of control, it is not only the bad news that must be focused on. Good news is also news that should be welcomed.

The housing market is one area that is directly relevent to the problems in the sub prime. In February, housing hit a nine-year low. It appears that the construction workers have begun to work faster and harder in building their buildings.

(Bloomberg) -- Housing starts rebounded in February from a nine-year low, easing concern that the U.S. real-estate slump will worsen and threaten the economic expansion.

Builders broke ground on new homes at an annual rate of 1.525 million last month, up 9 percent from the prior month and more than economists forecast, the Commerce Department said today in Washington. Building permits fell 2.5 percent.

The numbers eased speculation that climbing defaults on subprime mortgages would put additional homes on the market, leading builders to halt more projects and fire workers. At the same time, swings in the monthly figures don't convey the stability desired by Federal Reserve policy makers, who meet today and tomorrow to set interest rates.

What remains to be seen is if the subprime market will, after all, have a very negative effect. Always keep in mind that in these days of tons of information available to people, it is easy to mistake fact from fiction.

Notice also that you have to read between the lines, too. This positive information comes out on the same days as the fed is going to review the interest rates...makes you wonder how valid it is. And, as the article says, it makes you wonder how stable the current situation is.