While most of the attention was focused on the ramp higher in global equities over the last few sessions following the absence of major fundamental data announcements, Thursday’s housing data from the US Census Bureau showed that the outlook for the sector remains mixed.
Although building permits rising by 4.60% month over month through the end of January was greeted with significant optimism, groundbreaking for housing starts fell by -2.60% during the same period, underlining the mismatch.
In spite of S&P Case-Shiller home price index composite showing that housing prices have risen to a record level, questions about the outlook for residential construction remain, especially as inflation outpaces gains in wages.
Stocks retreated on Thursday following an uninterrupted 7-session rally, with the S&P 500 extending losses early on Friday.
US Housing Data Remains Mixed
Daily Analysis - 17/02/2017