"Housing starts fell in May from April’s seasonally adjusted annualized level of 744,000 units (their best reading since 2008) to 708,000 units," says RBS. "In June we expect starts retraced the entire May decline, rebounding to an annualized level of 745,000 units."
"Homebuilder optimism has climbed to its best level since 2007, and building permits surged in May by 8.4% to the highest level since October 2008," the bank continues. "In June, construction jobs increased following four straight monthly losses and the workweek in that sector lengthened as well."
"Against this backdrop," concluded RBS, "we look for both single-family and multi-family starts to have risen in June."