Is the U.S. housing market telling us something?

Housing starts are considered an indicator of the health of the economy. Previous housing start declines coincided with the 1973–1974 and 1979–1982 recessions, the 1987 stock market meltdown and the 2007–2009 housing-induced great recession. Recent trends are not encouraging. Despite a national housing shortage, housing starts have trended downward as interest rates have remained elevated, especially in southern states (where inventories are admittedly high). Just one data point among many, but maybe a sign that it might be time to lower interest rates?