Housing goes south

Output at the nation's factories, mines and utilities rose at the fastest pace in 17 months in October, posting a solid rebound from the devastating Gulf Coast hurricanes, according to recent reports. The Federal Reserve reported that industrial output was up a healthy 0.9 percent last month as refineries and oil and natural gas platforms began production again after widespread shutdowns caused by hurricanes Katrina and Rita. But home construction plunged by 5.6 percent in October, providing dramatic evidence that rising mortgage rates are beginning to dampen the housing boom. The October decline in housing, the biggest since a 17.7 percent drop last March, showed a slowdown in both single-family and apartment construction. In a sign of potential weakness in the future, the number of building permits issued in October dropped by 6.7 percent to an annual rate of 2.07 million units. Your comment?