Not a lot of thoughts, but here are some:
The data on single family building has reached the highest level since November. Low mortages are supporting demand.
Total building permits rose 8.4% and exceeded estimates, this increase (MTM) was the largest in the last 2 years.
Building permits also rose for a third month.
However data next week will show existing home sales which make up the majority of the US housing market so my focus is on that.
Starts (which are more volatile) have decreased 16.2% after a 16.4% decline in June, while permits increased 21.9% last month.
I don't like this report very much because it has a wide margin of error, there is a 90% chance that the headline figure was between a 12% decline and a 4% increase... in my opinion that margin is too wide to have a significant impact on the economic outlook.
Long term profits are inversely proportional to leverage
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