This is a sign that the housing market is not exempt from the laws of gravity,

The report illustrates the fact that housing is not defying gravity and is not likely to do so this year. We're going to see chipping away of housing.

I think this employment report shows that the laws of gravity do apply to monetary policy,

There's not a big market out here for housing. You don't find what you need, but you find what you can handle and be comfortable in.

Investors have become completely convinced that we need to see the housing canary buckle under a little bit. If the housing market softens, then investors will view that as the canary in the cave that indicates that central bankers will not have to be as aggressive.

The outsized gain in housing starts was influenced by the same variable dominating most of the other headline stats like the retail sales and industrial production, namely weather. Everyone knows that housing starts is a volatile number that generally reports wide swings.