Housing Data Continues To Be Volatile

Housing data continue to be volatile. Starts and permits rebounded in September after declines in August after sharp gains in July. Well, that's the definition of volatile.

Housing starts for September rebounded 6.3 percent after dropping 12.8 percent in August. September's pace of 1.017 million units topped market expectations for 1.010 million units and was up 17.8 percent on a year-ago basis.

The multifamily component rebounded a monthly 16.7 after plunging 28.7 percent in August. The single-family component rose 1.1 percent in September, following a 2.0 percent decline the prior month.

Building permits made a comeback, too. Permits increased 1.5 percent in September, following a 5.1 percent drop in August. Permits posted at 1.018 million units annualized, coming in a little below expectations for 1.027 million. September permits were up 2.5 percent on a year-ago basis.

Multifamily permits rebounded 1.5 percent after falling 5.1 percent in August. The single-family component slipped 0.5 percent in September, following a 0.6 percent dip the month before.

Today's report was somewhat mixed with starts and permits rebounding but permits came in below expectations slightly while starts came in slightly higher than forecast. Overall, housing made a comeback from a weak August and remains on a low trajectory.

Recent History Of This Indicator:
Housing starts for August fell 14.4 percent, following a boost of 22.9 percent the month before. August's pace of 0.956 million units was up 8.0 percent on a year-ago basis. The multifamily component declined a monthly 31.7 after jumping 44.9 percent in July. The single-family component edged down 2.4 percent, following an 11.1 percent surge in July. Building permits were oscillating, too. Permits decreased 5.6 percent in August, following an 8.6 percent boost in July. Monthly swings have largely been in the multifamily component. The single-family component has been in a modest downturn in recent months.