Overview:  Housing starts surged 14.5% in June while building permits increased 2.5% and new home sales fell 0.8%. Initial jobless claims increased 10,000 to a level of 418,000 for the week ended 7/16.

• Housing starts surged 14.5% in June to an annual pace of 629,000 units as building permits rose 2.5% to an annual pace of 624,000 units.  
• Existing home sales edged down 0.8% in June to an annual pace of 4.77 million units.  Sales were 8.8% below June 2010 sales.  The median home price was up 0.8%, to $184,300, compared to a year ago.  The National Association of Realtors attributed the decline in sales, in part, to an unexpected spike in contract cancellations, possibly owing to tight credit and low appraisals.
• Initial jobless claims increased 10,000 to 418,000 for the week ended July 16^th.