Housing Starts See Unexpected Drop

Washington, DC, May 17, 2011--Housing starts, the number of new homes being built, fell by 10.6% in April, according to the Commerce Department. The total for the month was 523,000 units, down from March's revised 585,000.

Economists had expected the month to level out at 563,000.

The number of building permits issued fell as well, down 4% to 551,000. Experts had expected in that area.

Weather likely played a role in April's poor performance. Last year was the tenth wettest April on record and tornadoes pummeled much of the South. Flooding along the Mississippi River may hamper homebuilding this month as well.