Housing permits dropped 15% in January, sales fell 10% and starts fell 17%. The decline in 30-year fixed mortgage rates from over 6% to near 5% failed to stop the housing collapse because consumer confidence fell to a record low 25.0% in February. The abrupt 8% drop in pending home sales in January confirms that weak consumer confidence trumps high home affordability, reports Jim Haughey, chief economist for Reed Construction Data.