US: Housing starts increased across every region – Wells Fargo


Housing data released on Friday in the US showed better-than-expected numbers, with an increase in housing starts by 19.4%. Analysts at Wells Fargo point out home building had gotten off to a strong start in 2020 before the lockdown caused activity to plummet in April. They see that the soft patch will inflate year-to-date comparisons over the next couple of months.

Key Quotes: 

“Housing starts rebounded solidly in March, with overall starts rising 19.4% to a 1.739 million-unit pace. Single-family starts jumped 15.3%, with activity rising solidly in every region except the West. Multifamily starts surged 30.8%, with large gains in the Northeast, Midwest and South. Both the number of homes under construction and number of homes completed rose solidly in March and both series hit their highest levels in more than 13 years.”

“This past month's rebound in housing starts should put to rest any debate about how much of February's drop was due to the extreme weather that impacted Texas and other parts of the South and Midwest and how much was due to supply-chain bottlenecks and soaring building materials prices.”

“Home builders are clearly ramping up construction to meet strong demand and the dearth of both new and existing home inventories. Yesterday's NAHB/Well Fargo Housing Market Index (HMI) rose one point to 83 in April.”

“The improvement in operating fundamentals and stronger economic outlook apparently are convincing enough for apartment developers to move forward with projects that had been put on hold.”

“Housing completions jumped 16.6% in March, marking the largest increase since January 2019. A 54.7% surge in multifamily completions accounted for large part of the increase.”

“The number of homes under construction at the end of March rose 0.8%, with single-family homes rising an even larger 1.6% to 636,000-unit pace. All four regions saw construction increase, with the largest gains coming in the Midwest and West.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD skyrockets to 1.2150 on poor US jobs figures

EUR/USD has hit a new multi-month peak above 1.2150 after the US reported an increase of only 266,000 jobs in April against nearly one million expected. The dollar is under immense pressure. 

EUR/USD News

GBP/USD soars toward 1.40 after disappointing Nonfarm Payrolls

GBP/USD has been extending its gains after the US Nonfarm Payrolls badly disappointed with an increase of only 266,000 jobs in April, nearing 1.40. Earlier, sterling benefited from the UK Conservative Party's gains in local elections. 

GBP/USD News

XAU/USD soars above $1,835 after weak Nonfarm Payrolls

Gold has leaped above $1,835 after the US reported an increase of only 266K jobs in April, far below expectations. Lower US yields support the precious metal.

Gold News

Judge reaffirms order SEC must produce documents on Bitcoin, Ether and XRP in Ripple case

Ripple's victory granted the firm access to the SEC's documents on the three leading cryptocurrencies. The regulatory agency recently denied the possession of these documents.

More Dogecoin News

S&P 500 and Nasdaq: Can the Fed pump anymore after weak jobs report

Well, that was an interesting jobs report. Not too many people were forecasting that one. Just in case you missed it NFP were forecast to come in around the 1 million jobs gained but instead the US only added 266k.

Read more

Forex MAJORS

Cryptocurrencies

Signatures