Parsing the Residential Construction Data Through Fed Eyes
The residential construction sector in the U.S. is showing signs of recovery despite some challenges. Recent data indicates an increase in housing permits and a slight decline in housing starts. Analysts suggest that a Federal Reserve rate hike could hinder this cautious optimism.
- ▪Housing permits rose 5.8 percent to an annual rate of 1.442 million units.
- ▪Housing starts slipped 2.8 percent but still exceeded expectations at 1.465 million annual rate.
- ▪The annual increase in housing starts is 4.6 percent over the past year.
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The most interest-rate-sensitive sector of the American economy is flashing a cautiously bullish signal. That is precisely why the last thing the market needs now is a Fed rate hike. In April, new residential construction data showed a market that is not booming, but it is trying to heal. Housing permits rose a strong 5.8 percent to an annual rate of 1.442 million units, well above market expectations. Housing starts slipped 2.8 percent on the month, but still came in above expectations at a 1.465 million annual rate and are up 4.6 percent over the past year. Read Full Article »
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