Today's Report (10/19/2021)

Building Permits

Privately‐owned housing units authorized by building permits in September were at a seasonally adjusted annual rate of 1,589,000. This is 7.7% (±0.9%) below the revised August rate of 1,721,000 but is virtually unchanged from (±1.1%)* the September 2020 rate of 1,589,000. Single‐family authorizations in September were at a rate of 1,041,000; this is 0.9% (±0.8%) below the revised August figure of 1,050,000. Authorizations of units in buildings with five units or more were at a rate of 498,000 in September.

Housing Starts

Privately‐owned housing starts in September were at a seasonally adjusted annual rate of 1,555,000. This is 1.6% (±11.4%)* below the revised August estimate of 1,580,000, but is 7.4% (±13.0%)* above the September 2020 rate of 1,448,000. Single‐family housing starts in September were at a rate of 1,080,000; this is virtually unchanged from (±8.4%)* the revised August figure of 1,080,000. The September rate for units in buildings with five units or more was 467,000.

Housing Completions

Privately‐owned housing completions in September were at a seasonally adjusted annual rate of 1,240,000. This is 4.6% (±9.0%)* below the revised August estimate of 1,300,000 and is 13.0% (±9.1%) below the September 2020 rate of 1,426,000. Single‐family housing completions in September were at a rate of 953,000; this is virtually unchanged from (±11.7%)* the revised August rate of 953,000. The September rate for units in buildings with five units or more was 280,000.


What is it?

It records the number of new homes being built, in the preceding month.

What are the fundamental effects?

This is a leading indicator of economic health. A sharp drop-off in home construction is a tale-tale sign that the broad economy is on the verge of slowing, whilst a rebound in housing starts and home buying sets the stage for a pickup in overall business activity.

How does it affect the markets?

CURRENCY - A strong housing report is considered bullish for the Dollar because it usually supports a scenario of higher corporate profits and firming of interest rates. Weak housing data can cause the value of the dollar to slip.

STOCKS - Prolonged weakness in housing starts can alarm stock investors since it acts as a precursor to a broader downturn in the economy. If housing activity is vibrant and inflation remains contained, it can be viewed as a positive sign.

BONDS - A healthy pickup in housing starts depicts a robust economy and where inflation pressures are likely to accelerate. That can knock down bond prices and cause yields to rise.

How is it computed?
Records number of new groundbreaking of:

- Single-Family Houses - Accounts for 75% of the release

- Residence with Two or Four Apartments - Townhouses, condos. Makes up 5%

- Units and Structures with 5 or More Units- Apartment buildings. Each apartment is considered a single start