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Wednesday, March 16, 2016

Housing Starts Up, Permits Down

Housing starts & permits are mixed with starts way up but permits, which are the more important of the two, way down. Starts rose 5.2 percent to a 1.178 million annualized rate while permits, which were expected to show no change, dropped 3.1 percent to 1.167 million. The gain for starts is split between a 7.2 percent surge for single-family homes and a 2.4 percent gain for the multi-family component. But it's not starts that are the telling information in this report, but the unexpected drop in permits which points to sagging momentum for the housing sector.


Recent History Of This Indicator:
Housing starts & permits have been volatile month-to-month and, after showing prior strength, eased back in February. Econoday forecasters do see strength for starts, to a 1.146 million annualized rate in February from January's 1.099 million, but no change for permits at 1.202 million. Lack of strength for permits would be a new disappointment for the housing sector.

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