Is housing turning around?

A number released this morning may indicate that the housing situation may be turning the corner.  Specifically, construction of new homes soared by 22.2% in February, exceeding estimates by a large margin.  Another number that was encouraging was that producer prices did not decline as much as expected, indicating that deflation may not be a problem after all.  Of course, this does not indicate that everything is now fine and that the stock market will respond with a big rally.  However, it is mildly encouraging.

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