Ahead of the Bell: Housing Starts

The Commerce Department report, due Thursday at 8:30 a.m. EDT, is expected to show construction of new homes and apartments fell to an annual rate of 960,000 units in June, according to the consensus estimate of Wall Street economists surveyed by Thomson/IFR.

If the forecast is correct, it would be 1.5 percent lower than the prior month's rate of 975,000 units.

Applications for building permits, considered a reliable sign of future activity, are projected to fall to an annual rate of 961,000 units, down 0.8 percent from May's rate, according to Thomson/IFR.

More dour housing news came Wednesday as the National Association of Home Builders' housing market index set a new record low. The July index, which tracks builders' sentiment about market conditions, came in at 16, the lowest point since the index started more than 20 years ago.

Tighter lending standards, rising foreclosures and fear about the housing market's future have sidelined buyers, an absence felt acutely by homebuilders such as D.R. Horton Inc., Pulte Homes Inc. and Centex Corp.