Both Housing Starts and Building declined dramatically in October stated a new report released by the Commerce Deparment early this morning.
Within a matter of minutes the news spread across the news wires.
U.S. housing starts fell 5.6 percent in October as construction of both single-family and multifamily homes slid, while a drop in permits for future groundbreaking was the largest in more than six years, the government said on Thursday.
October housing starts declined to a 2.014 million unit annual rate, slower than the 2.070 million unit pace expected by Wall Street economists, who had anticipated rising mortgage rates would cool activity. The decrease in October starts, from an upwardly revised 2.134 million unit rate in September, was the largest percentage drop since March.
Permits for future groundbreaking, an indicator of builder confidence, declined to a 2.071 million unit pace. That was down 6.7 percent from September, the biggest percentage decline since September 1999, when permits fell 7.2 percent, the Commerce Department said.
It said recent Gulf Coast hurricanes had minimal impact on the data.
The Census Bureau report showed that housing starts in October came in at an annual pace of 2.01 million, down from the revised 2.13 million pace in September. Economists surveyed by Briefing.com had forecast that starts would slip to an annual rate of 2.06 million.
Building permits, which are seen as a measure of builders’ view of market strength, dropped to an annual rate of 2.07 million from 2.22 million in September. Economists had forecast permits would fall to a 2.17 million annual pace.
I’m sure the NAR will call this “a normal seasonal slowdown”.