Housing Starts and Building Permits See a Significant Increase in August

Surprising Rebound in August

Following an unexpected drop in July, the data for Housing Starts and Building Permits in August showed a significant rebound, exceeding predictions. Housing Starts saw a 9.6% month-on-month increase, compared to the predicted 6.5% and the previous -6.8%. Building Permits also saw a jump with a 4.9% month-on-month increase, compared to the predicted 1.0% and the previous -3.3%. These figures are the highest since February.

SAAR for Starts and Permits Increases

The Seasonally Adjusted Annual Rate (SAAR) for starts and permits also saw an increase, although it still remains close to the lows seen during the COVID lockdown.

Single-Family Starts and Multi-Family Permits Lead the Increase

The increase was predominantly led by Single-Family Starts and Multi-Family Permits.

Rate-Cut Expectations and Forward-Looking Permits

This increase should not come as a complete surprise, as forward-looking permits have been tracking rate-cut expectations, albeit with a slight delay.

Potential Impact of a Fed Disappointment

It remains to be seen what the impact will be if the Federal Reserve does not meet expectations.

Bottom Line

This surprising rebound in Housing Starts and Building Permits in August is a positive sign for the housing market. However, the potential impact of the Federal Reserve not meeting expectations could have significant implications. What are your thoughts on this development? Do you think this upward trend will continue? Share your thoughts and this article with your friends. You can also sign up for the Daily Briefing, which is delivered every day at 6pm.