After an unexpectedly large decline in July, August's data for Housing Starts and Building Permits rebounded dramatically, well above expectations. Starts rose 9.6% MoM (vs +6.5% exp and -6.8% prior) while Permits jumped 4.9% MoM (vs +1.0% exp and -3.3% prior). Both prints are the highest since February...
Source: Bloomberg
The SAAR for starts and permits obviously rose but remains near COVID lockdown lows still...
Source: Bloomberg
Single-Family Starts and Multi-Family Permits dominated the increases...
Source: Bloomberg
This should not be a total surprise as forward-looking permits have tracked (with a lag) rate-cut expectations...
Source: Bloomberg
What happens if The Fed disappoints?
