US: Housing Starts rise in April, still below last year’s level - Wells Fargo


Data released today in the US, showed that housing starts jumped in April, rising 5.7%. Analysts at Wells Fargo, point out that the pace of new residential construction has picked up alongside improving buying conditions, but they warn housing starts remain below last year’s level.

Key Quotes: 

“New residential construction finally appears to be improving against a backdrop of lower mortgage rates, strengthening new home sales and improving builder sentiment. Housing starts increased 5.7% during April to a 1.235 million-unit pace. Single-family starts rose a sturdy 6.2%, while multifamily starts increased 4.7% during the month. Revisions to prior months’ data were also positive on balance. Last month’s 0.3% drop in total starts was revised to show a 1.7% gain.” 

“Even with lower mortgage rates and better weather, homebuilding is struggling to regain traction. Year-to-date, both single-family and multifamily starts are running below last year’s levels, and total starts through April are 7.2% below the same period last year. Building activity topped out in early 2018, however, which means year-over-year comparisons will get easier going forward.”

“Building permits rose a more modest 0.6%. The overall number of permits issued is running well ahead of actual starts, especially in the multifamily segment.”

“The gain in housing starts mirrors recent improvements in builder sentiment. The NAHB Housing Market Index, a measure of builder confidence, rose three points in May to 66.”

“The overall index remains below last year’s level, but sentiment is clearly improving. Both the number of new completions and homes under construction fell again in April. When combined with the improving trend in sales, builders are quickly clearing any unwanted buildup in inventory accrued late last year.”
 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD remains on the back foot amid ongoing trade concerns

EUR/USD is trading around 1.1150, the lowest in over two weeks. Markets are worried about US-Sino trade tensions as US companies stop working with China's Huawei. European elections are warming up.

EUR/USD News

GBP/USD consolidates its losses amid Brexit pessimism

GBP/USD is trading in the low 1.2700s, close to the lowest since January. UK PM May is set to present a new plan after cross-party talks failed and as calls for her to quit mount.

GBP/USD News

USD/JPY off multi-day tops, looks to test 110.00 ahead of Fedspeak

Japanese growth optimism in play as risk-on fades amid looming US-China trade risks. Eyes on risk sentiment, trade developments and Fed speak for fresh directives.

USD/JPY News

Gold aims to revisit 9-month old support-line near $1272

Gold is on its third negative trading day as it seesaws near $1276.50 ahead of the European open on Monday. Pessimism surrounding the US-China and the US-Iran relations could limit the bullion’s decline near trend-line support.

Gold News

Cryptos stage a Sunday surge, levels to watch – Confluence Detector

Cryptocurrencies have enjoyed a massive comeback early on Sunday, recovering most losses. The cleanup seen ahead of the weekend may be over, and it is time to look up to higher levels. Here are the levels to watch according to the Confluence Detector.

Read more

Majors

Cryptocurrencies

Signatures