Housing Starts Rise in September

This morning’s housing starts report showed a big increase. The Commerce Department said that housing starts rose 1.9% last month to a seasonally adjusted annual rate of 1.415 million units.

Single-family homebuilding, the largest share of the housing market, jumped 8.5% to a rate of 1.108 million units last month. But starts for the volatile multi-family housing segment fell 16.3% to a pace of 307,000 units.

Overall, housing starts increased 1.9% to a seasonally-adjusted annual rate of 1.415 million units last month. Data for August was revised down to a 1.388 million-unit pace from the previously reported 1.416 million. Groundbreaking activity rose in the West, South and Northeast, but fell in the Midwest.
Economists polled by Reuters had forecast starts increasing to a rate of 1.457 million units in September.

It’s hardly a secret why. Mortgage rates continue to be very low.

The stock market is up so far today. The S&P 500 is up about 1%. Many of the cyclicals are leading.

Posted by on October 20th, 2020 at 12:55 pm


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