With homebuilder optimism finally collapsing down to the reality of 'hard' housing data, any glimmer of hope is clung to as if it was writ in stone.

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But Housing Starts and Permits failed to offer any light at the end of the tunnel.

• Starts rose 1.5% MoM (missing expectations of a 2.2% rise) after tumbling a revised lower 5.5% MoM in September.

• Permits fell 0.6% MoM after a revised higher 1.7% rise in September.

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Northeast led the rebound in starts but The West was a disaster (Northeast: +21.1% Midwest: +9.4% South -2.4% West -7.9%)

The rise in starts was all rentals (single-family -1.8%, multi-fam +6.3%)

Permits were unimpressive for both single-family (-0.6%) and multi-fam (unch)

The rollover in starts/permits is also concommitant with previous recessions...

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And a final reality check...

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Fun-durr-mentals matter in the end.