Housing starts climbed 4.5 percent in December, the U.S. Commerce Department announced yesterday. Permits for future building activity also rose, a sign market conditions are stabilizing.

While some saw these increases as an indication that housing is on the upswing, others were dubious.

"Housing starts are a weather story," say Keith Hembre, chief economist with FAF Advisors in Minneapolis. "I wouldn't take it as conclusive evidence that the housing downturn is over in a sustained manner."

Source: Reuters News, Burton Frierson (01/18/07)