Today's Report (11/17/2021)

Housing Starts

Privately‐owned housing starts in October were at a seasonally adjusted annual rate of 1,520,000. This is 0.7% (±12.2%)* below the revised September estimate of 1,530,000, but is 0.4% (±12.3%)* above the October 2020 rate of 1,514,000. Single‐family housing starts in October were at a rate of 1,039,000; this is 3.9% (±9.5%)* below the revised September figure of 1,081,000. The October rate for units in buildings with five units or more was 470,000.

Building Permits

Privately‐owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,650,000. This is 4.0% (±1.5%) above the revised September rate of 1,586,000 and is 3.4% (±1.6%) above the October 2020 rate of 1,595,000. Single‐family authorizations in October were at a rate of 1,069,000; this is 2.7% (±1.2%) above the revised September figure of 1,041,000. Authorizations of units in buildings with five units or more were at a rate of 528,000 in October.


What Is It?

It records the number of new homes being built, in the preceding month. The report includes building permits, housing starts, and housing completions data—all of which are compiled from surveys of homebuilders across the country.

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.