Just when you think you are out of the woods, one more stats will come out of the blue and strike you. This is how the stock market works! We heard about improvements in U.S. real estate market for the last weeks. Today, Commerce Department reported unexpected drops in home construction and building permits in October. The data showed housing starts decreased 10.6% to a seasonally adjusted 529,000 annual rate compared to the prior month. Economists expected 1.7% increase. The 10.6% fall carried construction to the lowest point in six months.

Building permits in October fell 4.0% to a 552,000 annual rate. Economists had expected permits to rise by 0.9% to a rate of 580,000. Building permits are a sign of future construction and it appears that future is not that bright for real estate market.

Related Link: Choppy Trading Continues