The unusually warm January weather in the Northeast has led to outliers in economic data, most notably the best January in housing starts since 1973.

On the surface, a torrid pace of housing starts seems to be a good thing for the economy, but in this case it appears that the weather has skewed the data from home heating (way down) to retail (way up, especially in building materials.) After December's very disappointing figures, January's numbers may not add up to an increase in demand for this year, but merely a shift in timing.

Tags: housing starts economy weather demand

Slower housing price gains and higher interest rates are contributing to a slowdown in the housing market. Experts forecast growth in the upcoming year, though not at the torrid pace of the last few years.

Bloomberg News:

Higher home prices and borrowing costs will curtail demand this year, according to real estate industry forecasts. Demand for refinancing and home equity loans, which have driven consumer spending and boosted economic growth, may also fade. Federal Reserve Bank of St. Louis President William Poole said business investment will begin to replace housing as an engine of growth.

Tags: realestate data housing homeprices rates interest