Posted on 06/19/2012 7:47:42 AM PDT by whitedog57
According to the Department of Commerce, housing starts fell 4.8% in May to a 708,000 annual rate from a revised 744,000 rate in April. The previous month was the highest since October 2008. The forecast by economists was for 722,000, a substantial miss on the downside.
This might explain why yesterday’s homebuilder confidence rose by only 1 point. With mortgage rates falling to new lows, home affordability is the highest its been in decades.
Building permits rose 7.9% from a revised rate of 723,000 in April to 780,000 in May. Economists were expecting 780,000. This is a big miss to the upside.
Now here is a reversal from previous reports. Single family detached starts were up 3.2% while multifamily starts fell -21.31%.
And housing completions fell as well.
Add to the housing recovery tonic the fall in JOLTS job openings today falling from 3,741 to 3,416 in April, and we have a SLOW recovery.
Vice President Joe Biden spoke on the housing market the other day. He seems to be advocating that the Chinese housing and infrastructure is superior to that of the USA. Gee, I don’t know about that, Mr. Vice President.
Perhaps he was thinking of China’s ghost cities.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
You mean people don’t want to live in condos on the railroad tracks afterall?
Agenda 21 fail.
The Obama boosters at CNBC hailed this as an improvement, of course. Steve Liesman must wear rose-colored contacts when he reads these reports.
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