U.S. August Housing Starts and Permits - Broad based slippage
August housing starts with a fall of 8.5% to 1307k and permits with a fall of 3.7% to 1312k are both weaker than expected. Details in both series show declines in both singles and multiples, with the sharper declines in the volatile latter components.
The starts decline follows two straight gains and the level remains above that seen in May. The permits decline is the fifth straight and the level the weakest since May 2020 near the height of the pandemic.
Single family starts fell by 7.0% after a 3.5% July increase while single family permits fell by 2.2% after a 1.0% July increase. Multiple starts fell by 11.7% after two straight gains but the 6.4% decline in multiple permits extended a July drop.
The data is consistent with weakness in the NAHB homebuilder’s survey which persisted in September. There are however hints of improvement in the latest MBA weekly house purchase index, suggesting recent declines in mortgage rates are having some impact.
