A Bit Of Good News...Or Not

Housing starts for February rebounded considerably from January's record low.

New U.S. housing starts unexpectedly rebounded in February, surging 22.2 percent, according to data on Tuesday that provided a rare dose of good news for the recession-hit economy and fractured housing market.

The Commerce Department said the jump in housing starts to a seasonally adjusted annual rate of 583,000 units was the biggest percentage rise since January 1990.

Maybe that's just a blip, but again if the supply of houses goes up, the price goes down. If anything, this means there's still a major glut of homes on the market, and the big jump in new houses means there will be even more pressure on prices to drop.

And that's not good news.