Reply To: Traders Market Weekly: Global Market Dislocation at a Precipice

#44048
Truman
Participant

Total housing starts increased 12.2% month-over-month to a seasonally adjusted annual rate of 1.575 million units (consensus 1.448 million), driven by a whopping 28% increase in multi-unit starts. Single-family starts were up 3.4%.
Building permits, though, were down 10.0% month-over-month to a seasonally adjusted annual rate of 1.517 million (Briefing.com consensus 1.610 million), paced by a 17.9% decline in multi-unit permits and a 3.5% decline in single-family units.

The key takeaway from the report is that the weakness in the permits data suggests the strength in starts is not sustainable, especially when also taking into account that mortgage rates have risen since the July-August period and yesterday’s NAHB Housing Market Index for September showed yet another decline in homebuilder sentiment.