U.S. Housing Starts Rise to 896K in July, Nearly Flat with Views (LEN) (XHB) (DHI)
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Homebuilders are on watch today following data on new housing starts.
For the month of July, the U.S. Commerce Department said that new home starts rose 5.9 percent to a seasonally-adjusted rate of 896,000 units, from an upwardly revised 846,000 unit rate the prior month. Consensus views were looking for a reading slightly richer at 900,000 units.
U.S. building permits were also moderately below expectations at an adjusted annual pace of 943,000 units, while the Street saw 945,000 units.
With the recent rise in mortgage rates, applications have been down and it might have been expected that starts would also slump. This week, the MBA Mortgage Index dropped 4.7 percent, from a gain of 0.2 percent the prior week.
The FOMC will hold its next meeting in September and market watchers suspect that the recent slew of moderately positive economic data might cause the Fed to begin tapering its bond-buying program, while rates might also start to creep higher.
Moving today include names like Hovnanian Enterprises Inc. (NYSE: HOV), PulteGroup (NYSE: PHM), D.R. Horton (NYSE: DHI), Beazer Homes (NYSE: BZH), Lennar (NYSE: LEN), and SPDR S&P Homebuilders (NYSE: XHB).
For the month of July, the U.S. Commerce Department said that new home starts rose 5.9 percent to a seasonally-adjusted rate of 896,000 units, from an upwardly revised 846,000 unit rate the prior month. Consensus views were looking for a reading slightly richer at 900,000 units.
U.S. building permits were also moderately below expectations at an adjusted annual pace of 943,000 units, while the Street saw 945,000 units.
With the recent rise in mortgage rates, applications have been down and it might have been expected that starts would also slump. This week, the MBA Mortgage Index dropped 4.7 percent, from a gain of 0.2 percent the prior week.
The FOMC will hold its next meeting in September and market watchers suspect that the recent slew of moderately positive economic data might cause the Fed to begin tapering its bond-buying program, while rates might also start to creep higher.
Moving today include names like Hovnanian Enterprises Inc. (NYSE: HOV), PulteGroup (NYSE: PHM), D.R. Horton (NYSE: DHI), Beazer Homes (NYSE: BZH), Lennar (NYSE: LEN), and SPDR S&P Homebuilders (NYSE: XHB).
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