–Permits +7.5% to 685k, 1-Fam Permits +5.6% to 543k
By Joseph Plocek
WASHINGTON (MNI) – U.S. March housing data show continuing recovery
and also possibly the effects of winter storms on single-family
construction.
March housing starts printed +1.6% to 626,000 units in a third
gain and their highest since November 2008, and permits rose 7.5% to
685,000, their highest since October 2008, suggesting momentum.
However, single-family starts disappointed at -0.9% as singles in
the Northeast fell 23.1%. This was perhaps weather-related. Single
starts in the West were flat but other areas gained.
Multi-unit building starts advanced 15.4%, led by gains in the
South and Northest.
Starts are recovering and this is the beginning of a process of
rebound that still has a long way to go from the April 2009 bottom.
Completions were down 3.1% to a new low 656,000, and units under
construction were off 1.4% to 489,000, a cycle low. These suggest
builders are proceeding cautiously in the face of competition from
foreclosures.
Looking ahead, the end of the Federal Reserve’s mortgage-backed
securities buying program has raised mortgage interest rates 30-50 basis
points, and this suggests there will be further caution in housing.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
