Despite rebounding by about 7% in May following a three-month slide, housing starts backpedaled once again in June as they fell by about 5% to 1.850 million units (at an annualized rate), as reported by the Commerce Department. And this was not the only piece of bad news to hit the sector during the month of June, as building permits posted a 4% decline as well.

Indeed, certain parts of the housing market are definitely slowing down, according to Omair Sharif, a strategist at RBS Greenwich Capital. "Although part of the weakness last month can be blamed on harsh weather in the Northeast, it seems that the South and the West, which were the most torrid regions in terms of residential construction activity in the last few years, are showing clear signs of cooling rapidly," he said.

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