Housing Starts Fell In August

Housing starts fell back in August but not permits which gained and point to strength for starts ahead. Starts fell 3.0 percent in the month to a lower-than-expected 1.126 million annual pace while permits rose 3.5 percent to a higher-than-expected 1.170 million. Starts for single-family homes, like the headline for starts, also fell 3.0 percent in August but follow a 10.9 percent surge in July. Permits for single-family homes rose 2.8 percent in the latest month to a 699,000 pace which is the highest since 2008. On net, this report is another positive for housing which is proving to be a key sector for the 2015 economy.

Recent History Of This Indicator: Housing starts are expected to dip 3.2 percent in August to a 1.168 million annual rate, reflecting a prior dip for permits. But housing permits are expected to rise 3.7 percent to a 1.160 million rate, reversing a plunge in July that was skewed by a change in New York City real estate law. A drop in starts and a rise in permits could lower expectations for third quarter housing while raising expectations for the fourth quarter.