Overview: Housing starts fell 4.3% in December while building permits rose 16.7% and existing home sales jumped up 12.3%.  Initial jobless claims fell by 37,000 to a level of 404,000 for the week ended 1/15.

• Housing starts fell 4.3% to an annual pace of 529,000 units in December.  
• Building permits surged 16.7% to an annual pace of 635,000 units in December. Single-family permits were up 5.5% and multifamily permits increased 53.5%.  The rise in permits suggests builder optimism for an improved housing market, but it is yet to be seen whether financing will be available to begin construction on these permits. 
• Existing home sales jumped up 12.3% to an annual pace of 5.28 million units in December. This marks the first month since June (when the tax credit was still applicable) that the pace of sales has been over 5 million, and the 12.3% increase was the largest increase in over 10 years.
• Initial jobless claims fell by 37,000 to 404,000 for the week ended January 15^th.