Permits Plunge But Starts Surge As Housing Data Suggests Rough Future Ahead

After small rebounds in July (after three ugly months prior), August was expected to see those gains consolidate but the picture was extremely mixed with Starts spiking 9.2% MoM and Permits plunging 5.7% MoM.

  • The surge in Starts is the best month since January 2018
  • The plunge in Permits is the worst month since Feb 2017

This suggests a rough time ahead for housing as Permits plummet to the lowest since May 2017…

All of which suggests home builder stocks have further to fall…

Probably time for some more rate hikes!

Source: ZeroHedge