MarketBeat
Housing Data Still Awful
By Mark Gongloff
- AP
Housing data continue to be the site of more disappointment than Wrigley Field.
The Commerce Department reports that new housing starts tumbled 10.6% in April to an annualized pace of 523,000, well below the 569,000 or so economists expected. Yikes.
A more forward-looking indicator, permits for new construction, fell 4%, worse than expected.
But, hey, look on the bright side! March starts were revised sharply higher, to a 585,000 pace from 549,000.
OK, no, that doesn’t help. As BMO economist Jennifer Lee put it: “Ugh,” adding that the revision “doesn’t begin to change the gloomy tone of this report.”
As a homeowner, I can’t say I’m too sorry to see less housing supply hitting the market. But that’s selfish; this is bad news for homebuilders and not good for the economy.
The news set back stock futures and commodities. Bonds are loving it: The 10-year note yield’s down to 3.14%.
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