U.S. June Housing Starts and permits rise but solely on volatile multiples sector
June housing starts and permits are stronger than expected, starts up 3.0% to 1353k and permits up 3.4% to 1446k. However the gains are solely in the volatile multiples sector with single starts down by 2.2% and single permits down by 2.3%.
This is the fourth straight decline in single starts and the fifth straight decline in single permits.
Single permits are usually a good guide to trend with the latest string of declines following a string of 13 straight gains. If the Fed starts easing this year the string of declines will probably be shorter than the string of increases was.
Multiple starts rose by 19.6% after a fall of 8.2% in May while multiple permits rose by 15.8% after three straight declines. Trend in multiples has been gently negative over the past year.
