US building permits decline for third consecutive month

U.S. building permits have dropped for the third consecutive month, indicating a challenging period for the housing market. In February, housing starts increased by 11.2% compared to the previous month. This was surprising, especially after a significant decline of 11.5% in January. Experts had predicted a small rise in housing starts due to recovering conditions, but they did not expect such a large increase. However, building permits fell by 1.2% in February, which is close to the 1.4% drop that analysts had anticipated. Both single-family and multi-unit building permits saw a decrease, even as housing starts for both categories surged. The number of building permits is now at levels similar to those seen over a decade ago. Despite the increase in housing starts, homebuilder sentiment remains low. Experts warn that this improvement may not last long. The future of residential construction looks uncertain, even with mortgage rates falling.