Housing Starts on the Upswing

 

Within the report, single-family units are set to rebound after unexpectedly slipping 3 percent in August.

Housing starts have climbed 25 percent since bottoming out in April. The current pace of new unit construction is 598,000 per year. Wall Street expects that to bump up to 615,000 in the September report. Multi-family units are more volatile, having jumped 25 percent in August after diving 15 percent in July. Look for continued recovery in housing with residual effects taking six to eight months.

“Residential construction is expected to improve as a result of better affordability conditions and positive readings on home sales,” said forecasters from BBVA. “Despite the improvement, there is still a significant degree of uncertainty surrounding residential construction as the tax credit will expire in November and the economy will likely recover at a slow pace.”

– Courtesy of Mortgage News Daily