US Housing Starts (1-unit) Fall 6.4% In May Despite Plunging Mortgage Rates

Despite the hype of soaring mortgage applications (refis, not purchases) and homebuilder stocks, housing starts tumbled 0.9% MoM in May (drastically missing expectations for a 0.3% rise), and while permits rose a better than expected 0.3% MoM, it remains very flat for the last six months.

https://confoundedinterestnet.files.wordpress.com/2019/06/hsfed.png

Multi-family permits fell in May (to 820k) as single-family rose modestly (to 449k)…

https://www.zerohedge.com/s3/files/inline-images/2019-06-18%20%282%29.png?itok=c4P_ZwU9

The better than expected print for overall starts (at 1.294mm), was thanks to a massive spike in rental units…

https://www.zerohedge.com/s3/files/inline-images/2019-06-18_0.png?itok=efCiunLH

Breakdown

  • Housing Starts 1-Unit: -6.4%, from 876K, to 820K
  • Housing Starts Multi Unit: +13.8%, from 383K to 436K 

Not exactly a picture of health for the future of millennial homeownership as rental nation remains front and center, despite plunging mortgage rates.

https://www.zerohedge.com/s3/files/inline-images/bfmD66B.jpg?itok=9EFzUBMM

At least 1-unit starts got one surge from declining mortgage rates in January 2019.

Will The Fed’s Jay Powell come to the rescue? 

Go Jay Powell! Go Jay Powell!

https://confoundedinterestnet.files.wordpress.com/2019/06/jerome-powell-presser-1219-super-tease.jpg

Source: ZeroHedge & Confounded Interest

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