Starts in pink U.S. 7.2% in March to 549,000 pace

April 19, 2011, 4: 11 pm EDT by Bob Willis

(Updates with in the fifth paragraph of closing market prices).

April 19 (Bloomberg)--a gain in March put in shipyard failed offset ground lost the previous month, as houses U.S. manufacturers continue to struggle almost two years after the economic recovery.Work began on 549,000 homes at an annual rate, up to 7.2% from the prior month and exceeding forecasts median 520 000 economists surveyed by Bloomberg News, the Commerce Department figures showed today in Washington. Starts fell by 19% in February to the lowest level in almost two years.Housing, which has pushed the economy into recession, remains the weakest link in the recovery and continues to weigh on the fall in prices of real estate of consumption spending. The prospect of more seizures and forecast to average 8.7% this year unemployment means that any recovery in housing can take the time to develop. "" We remain at very low levels, ", said Richard DeKaser, Economist at the Parthenon Group in Boston, which provide correctly increase last month. "The best description is bumping on the merits.". The underlying trend is one of stability or modest improvement since we received our low point it a few years ago. "The stocks increased as income to corporations, Johnson & Johnson to Steel Dynamics Inc. exceeded estimates. The standard & poor 500 Index climbed 0.6% 1,312.6 the 4 hours close again York.Housing starts estimates varies from 475 000 to 620 000 in the Bloomberg News of 77 economists survey.February RevisionThe Commerce Department revised in February at a pace 512.000 total, up by a previously estimated 479,000. It is still the lowest since a 477,000 in April 2009 rate was the lowest on record.The revisions more an increase in applications for construction is less dire figures. Allowed to construct a proxy for future construction, increased by 11% to a pace 594,000. They were projected to increase by 1.1% to an annual rate of 540 000.Construction of single-family homes increased 7.7% at a rate of 422,000 in March from the previous month. Work on the multifamily residences, such as houses, row and apartments, increased by 5.8% to an annual rate of 127, 000.Starts rose in three of the four regions, led by a jump of 32 percent in the Midwest. They fell 3.3% in the South.Confidence among the manufacturers U.S. fell in April, led by a decline in sales opportunities. The index of the National Association of Home Builders/Wells Fargo denied feeling of 16 EC months of 17 March, the Washington-based group data showed yesterday. A measure of sales expectations for the next six months dropped to the level lowest since October.Home SalesNew-home sales fell to an extremely low annual rate of 250 000 in February, the Commerce Department reported on March 23. The median price dropped to the lowest level since December 2003.Sales of existing houses, which represent more than 90% of the market, has increased from 2.5% to 5 million annual pace in March, economists surveyed by Bloomberg forecast of the National Association of Realtors is report tomorrow. Sales have gained market share of new homes because of the cash purchase over residences in distress.Loan rates are rising because covers the whole of the economy. The average rate on a 30-year fixed loan increased to 4.98% the week ending 8 April, the highest since February 18, according to the Mortgage Bankers Association. Costs of borrowing soared since reaching 4.21% in October, the lowest since the beginning of the records of the group in 1990.More ForeclosuresEven with seized home currently delayed that banks and the state attorneys general struggle to agree on the new guidelines, deposits of foreclosure will be mounted about 20% in 2011atteignant a peak of the crisis in housing, RealtyTrac Inc. said January 13 Inc. CoreLogic month last considers approximately 1.8 million households were delinquent or in foreclosure, a set of "shadow inventory" supposedly to add to the 3.5 million existing homes already on the market. "Federal Reserve policy makers activity on the housing market continued to be depressed, retained by the extensive inventory of property seized or in difficulty on the market and by the weakness of demand,"said their policy meeting minutes March 15 released 5." April-builders are not optimistic. KB, the Los Angeles home builders goals early buyers, this month reported a loss greater than expected for the quarter ended February 28 as orders plunged. "Today's consumer is very careful, if they have the door to the House prices falling further, their employment status, their ability to qualify for a loan, or general confidence in the economy,"the President and Chief Executive Officer Jeffrey Mezger"said during a conference call with analysts on April 5. "A sustained recovery, bringing together housing produce until we start to experience significant job creation."

-Editor: Carlos Torres

To contact the reporter on this story: Bob Willis to Washington for bwillis@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz to the cwellisz@bloomberg.net

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