Housing starts surge more than expected (ITB, XHB, PKB, HOMX, FLM)
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Housing starts climbed more than expected in June.
According to the Census Bureau, starts rose 9.8% an annualized pace of 1.174 million. Building permits rose 7.4% at an annualized pace of 1.343 million.
Economists had estimated that in June, starts rose 6.7% at an annualized pace of 1.106 million, and building permits fell 8% at an annualized pace of 1.150 million.
The jump was supported by rising consumer confidence, a strong jobs market, and improvement in the supply of mortgage credit, said Peter Ciganik, Managing Director of GTIS Partners.
<span>In a note to clients after the release, Pantheon Macroeconomics' Ian Sheperdson said that the numbers were "hugely distorted due to a tax-break deadline."</span>
<span><span>"All the action is in the multi-family components, because ac</span><span>tivity has been massively distorted by a surge in activity in N</span><span>ew York ahead of the scheduled expiration of a tax-break for </span><span>multi-family developments on </span><span class="aBn" data-term="goog_1605649957"><span class="aQJ">June 15," he wrote.</span></span><span> "We knew from media reports t</span><span>hat activity soared before the deadline, but we didn't know if </span><span>that would be enough to offset the drop-off afterwards. C</span><span>learly, it was."</span></span>
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