GOOD MORNING. Stocks in Asia closed mixed, European markets are rising, and U.S. futures are pointing to a slightly positive opening.

Housing starts fell in February, according to data released this morning by the Census Bureau and the Housing Department. After rising in January, housing starts fell 5.9% in February, while building permits fell 1.6%. Starts and permits for the month were just 0.2% and 11.3% above year-ago levels.

Housing data are seasonally adjusted, but unusually severe winter weather in February may have dragged on this month’s activity. Current data on the housing market points to a prolonged recovery, says Dave McCarthy, President and CEO of Integrated Asset Services. That company’s proprietary home price index, released last week, shows national home prices falling 2.3% in January for a sixth straight down month. With unemployment still high and homeowners having trouble keeping up with even modified mortgages, the housing market is likely to struggle along a plateau for some time, he says.

Today’s other headline event will be the Fed’s Open Market Committee’s policy announcement at 2:15 p.m. Another change in the discount rate is possible, but a change in the federal funds rate isn’t likely, says Doug Roberts, chief investment strategist for Channel Capital Research. With Thomas Hoenig dissenting from the decision to leave the federal funds rate low “for an extended period” at the January meeting, Fed-watchers will be looking to see if any other governors join him this time, which would suggest growing pressure for a rate change, Roberts says.

Normally a Fed announcement is the week’s big event, but a particularly data-heavy week means any market reaction to today’s statement may be short-lived. “You may have a move, but it may not be the decisive move of the week,” Roberts says.

IN OTHER NEWS:

  • European finance ministers are meeting today and working out the technical details of a plan that would allow for emergency loans to Greece. LINK
  • Lehman Brothers fired a senior vice president who raised concerns about the company’s accounting procedures in June 2008. LINK
  • Sony (SNE) has signed a $250 million dollar deal with Michael Jackson’s estate. LINK

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