US Housing Starts Fell Another 2.0% as Building Permits Fell 0.6% in June

US housing starts in June came in lower-than-expected 1.559m vs 1.580m expected. This is 2 percent below the revised May 2022 estimate of 1,591,000. Building permits 1695K vs 1785K, this is 0.6% below the revised May rate of 1,695,000. The key takeaway from the report was the broad-based softness in single-family starts and permits. The Fed’s Waller highlighted retail sales and housing data as potential reasons to raise rates 100 bps if they were ‘materially’ stronger than expected which they … Continue reading “US Housing Starts Fell Another 2.0% as Building Permits Fell 0.6% in June”

Mortgage Rates Fall First Time in Four Weeks

Mortgage-finance giant Freddie Mac said in a statement Thursday the average for a 30-year fixed-rate mortgage fell to 5.70%, down from 5.81% last week. This was the highest level since November 2008 and well above the 3.11% recorded near the start of the year. At the last Federal Reserve meeting the bank rose rates by 75 basis points, the largest amount since 1994. The effect of interest rates is being felt hard by homebuyers. The move was swift, in just … Continue reading “Mortgage Rates Fall First Time in Four Weeks”

Mortgage Rates Soar to Highest Level Since 2008 at 5.81%

Mortgage-finance giant Freddie Mac said in a statement Thursday the average for a 30-year fixed-rate mortgage rose to 5.81%, up from 5.78% last week. This is the highest level since November 2008 and well above the 3.11% recorded near the start of the year. At the last Federal Reserve meeting the bank rose rates by 75 basis points, the largest amount since 1994. The effect of interest rates is being felt hard by homebuyers. The average rate on a 30-year, … Continue reading “Mortgage Rates Soar to Highest Level Since 2008 at 5.81%”

US Housing Starts Fell 8.9% as Building Permits Fell 7.0% in May

US housing starts rose in May came in much lower-than-expected 1549K vs 1701K expected. This is 14.4 percent (+/- 8.9%) below the revised April 2022 estimate of 1,810,000. Building permits 1695K vs 1785K, this is 7.0% below the revised April rate of 1,823,000. This does not auger well for US GDP ahead, Atlanta Fed’s GDPNow model estimated no growth in real GDP in Q2 versus prior forecast for 0.9% growth yesterday. That’s a very sharp slowdown in construction and it … Continue reading “US Housing Starts Fell 8.9% as Building Permits Fell 7.0% in May”

Mortgage Rates Soar to Highest Level Since 2008 at 5.78%

The Federal Reserve Rose rates by 75 basis points yesterday, the largest amount since 1994. The effect of interest rates is being felt hard by homebuyers. The average rate on a 30-year, fixed-rate mortgage rose to 5.78%, mortgage-finance giant Freddie Mac said Thursday. This is the highest level since November 2008 and well above the 3.11% recorded near the start of the year. in just one week it has risen over half a percent. Last week, Freddie Mac reported an … Continue reading “Mortgage Rates Soar to Highest Level Since 2008 at 5.78%”

US Housing Starts Hit Nine Month High, up 1.4% as Building Permits Rise 9.1% in December

US housing starts rose in December 1.4% to a seasonally adjusted annualized rate of 1.702 mln units versus a consensus 1.650 mln from a revised 1.678 mln units in November (from 1.679 mln). Housing demand remains strong although high prices for building materials, lumber, supply constraints and labor shortages. Building permits rose 9.1% to a seasonally adjusted 1.873 mln in December up from a consensus 1.702 mln and a revised 1.717 mln in November (from 1.712 mln). The move suggests … Continue reading “US Housing Starts Hit Nine Month High, up 1.4% as Building Permits Rise 9.1% in December”

China Consumer Inflation Hits 15 month High With a Jump in Food Prices

Inflation in China rose to 2.3% in November 2021, the highest figure since August 2020 from 1.5% a month earlier. Market consensus was 2.5%. Food prices and a further rise in cost of non-food items both rose. The cost of food increased for the first time in six months. China inflation November 2021 Consumer price index CPI 2.3% y/y, vs expected 2.5% y/y, prior 1.5% CPI 0.4% m/m, vs expected 0.4% y/y, prior 0.7% Highest since August 2020, boosted by … Continue reading “China Consumer Inflation Hits 15 month High With a Jump in Food Prices”

US Housing Starts Rose 3.9% in August Surging in The Northeast 167.2%

US housing starts rose in August 3.9% m/m vs -7% prior, or 1615K v July’s revised 1554K. Starts surged the most in the Northeast (167.2% to the highest level since January). Building permits rose 6.0% m/m ighest level since April.

China Consumer and Producer Inflation Pace Quickens in March

Inflation in China came in higher than expected levels for both the consumer and producer in March. CPI 0.4% y/y (vs. expected 0.3%) & PPI 4.4% y/y ( vs. expected 3.6%) the quickest pace of increase since 2018.  China Inflation March 2021 Consumer price index CPI 0.4% y/y, vs expected 0.3% y/y, prior – 0.2% for the m/m at -0.5% This was the highest reading since October 2020. On a monthly basis, consumer prices fell by 0.5 percent in March, … Continue reading “China Consumer and Producer Inflation Pace Quickens in March”

People’s Bank of China Warn on Leverage of Chinese Households

The PBOC issued a research paper on the Chinese households credit situation highlighting that a household credit boom could tend to drag down economic growth more so than corporate debt.  Mortgages are handcuffing China’s economic potential, as funding is redirected toward real estate and away from more productive uses.