Last Update: 23-Nov-15 17:57 ET
- The October Housing Starts report was a disappointment. Starts declined 11% to a seasonally adjusted annual rate of 1.060 million units from a downwardly revised 1.191 million in September (from 1.206 million). That was much weaker than the Briefing.com consensus estimate, which stood at 1.173 million.
- Building permits increased 4.1% to a seasonally adjusted annual rate of 1.150 million from an upwardly revised 1.105 million in September (from 1.103 million). That was above the Briefing.com consensus estimate of 1.137 million.
- The downturn in October housing starts was driven by a 25.1% decline in multifamily starts, which followed on the heels of an 18.1% increase in September. A natural pullback was expected after the big September increase, yet the drop was more pronounced than many had thought.
- There wasn't a pickup in single-family starts either as they dropped 2.4% to 722,000, led by a 6.9% decline in the South.
- All other regions showed an increase in single-family starts in October with the Northeast up 7.0%, the Midwest up 2.1%, and the West up 1.8%.
- The number of homes under construction increased 0.9% to 938,000 from an upwardly revised 930,000 (from 928,000) in September. The increase should help bolster Q4 GDP growth.
- October housing starts were at their lowest level since March 2015 and well below the prior three-month average of 1.153 million. With the October disappointment, the three-month average slipped to 1.122 million, which is still nearly 10% higher than the three-month average seen in October 2014.