The expected rebound in housing data now that winter weather has abated failed to materialize as the latest permits and housing starts data missed expectations by a wide margin. Building permits fell by -5.70% month over month compared to a -2.00% contraction forecast with housing starts climbing a meager 2.00% in contrast to the estimate of 15.90% expansion. The time for blaming the weather on poor figures has passed and highlights that the housing economy still is not on firm footing and remains on a knife edge. Meanwhile, Federal Reserve members continue to talk up higher interest rates with Vice Chair Stanley Fischer highlighting that “markets can’t depend on Fed staying on hold forever.” The big reaction in financial markets was a move to the upside in gold as commentary sent the dollar tumbling.
US Housing Component Remains Subdued
Daily Analysis - 17/04/2015