US Housing Starts Dive 18.7 Percent as Mortgage Interest Rates SoarHousing-Market / US Housing Dec 17, 2016 - 04:14 PM GMT
The often volatile housing starts numbers took another dive this report, down 18.7% in November according to the Census Bureau New Residential Construction report for November 2016.
Housing starts 1959-Present
Year-Over-Year Detail Since 1994
New Residential Construction Details
- Permits down 4.7% from October
- Permits down 6.6% from year ago
- Starts down 18.7% from October
- Starts down 6.9% from year ago
- Completions up 15.4% in October
- Completions up 25% from year ago
Mortgage Rates Soar
Mortgage rates have risen 104 basis points (1.04 percentage points) since July 8.
As I have pointed out, this is bound to affect the housing market sooner or later. Sooner means now.
Each quarter-point hike will affect mortgage rates correspondingly until the long end of the curve refuses to rise further. At that point, we will be in recession.
Still think three hikes are coming in 2017?
By Mike "Mish" Shedlock
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Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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