Weak US housing starts was all about weather and a rebound likely soon

US housing starts plummeted to 17.0% in Feb to 897k units annualized. Building permits rose a stronger-than-expected 3.0% to 1,092k in Feb, the second highest level so far this economic expansion. 

Snowstorms in the Northeast and colder-than-typical temperatures in the Midwest caused overall housing starts to plummet.

BMO Capital Markets notes in a report on Tuesday

• This weaker-than-expect report should not be heaped on the pile of other disappointing reports (mainly on the manufacturing sector and nominal retail spending). This was all about the weather and a rebound as soon as this month looks likely. 
  
  
• Looking past the weather, it's clear that the housing sector continues to grind out gains supported by income growth, low mortgage rates and rising household formation.