March Housing Starts fell to 654K units annualized from February’s 694K.

Traders were looking for an increase to 705K units annualized.

Single family starts fell to 462K from 463K in the month over month.

Multi-family starts fell to 192K from 231K month over month.

Housing permits however rose to 747K from last month’s housing permit of 715K.

A shift occurred as singly family permits fell lower to 462K against last months of 479K

Multifamily permits however rose to permits rose to 285K month over month.

Actionable Takeaway:  Although today’s housing report is disappointing – looking at the big picture, housing starts are up 10% on the year.

Numbers could be a reflection of home buyers having a harder time to obtain a loan.  Credit score need to be around 750 level while for FHA credit scores need to be around 700.

It warrants a close eye on how mortgage service companies such as Annaly Capital Management Inc. (NLY, quote) have to say on their conference calls