Total housing starts increased 3.9% month-over-month in July to a seasonally adjusted annual rate of 1.452 million units (consensus 1.446 million) and building permits increased 0.1% month-over-month to a seasonally adjusted annual rate of 1.442 million (consensus 1.460 million).
The key takeaway from the report is that the increase in starts and permits, albeit modest, was driven by single-family units, which are badly needed in a supply-constrained existing home market.
Treasury yields have climbed off their overnight lows in response to the data.
The 2-yr note yield, at 4.89% earlier, is down two basis points from yesterday to 4.93%. The 10-yr note yield, at 4.17% earlier, is up one basis point to 4.22%.