Housing Starts up while SFR Starts Fall.
Consumer Price Index (June 2015)
– CPI month/month +0.3% Previous was +0.4%
– CPI year/year +0.1%. Previous was +0.0%
– CPI core (less food & energy) month/month +0.2%. Previous was +0.1%
– CPI core (less food & energy) year/year +1.8%. Previous was +1.7%.
With core CPI near the Fed’s stated target of 2.0% and the Unemployment Rate below 6% the Fed may feel that a rate hike is the right move.
The problem I see is that while the Fed may be meeting its dual mandate, economic growth (GDP) is still quite weak averaging 2.2% growth for the past 3 years +.
Housing Starts (June 2015)
– Starts seasonally adjusted, annualized 1,174,000. Previous was 1,069,000
– Permits seasonally adjusted, annualized 1,343,000. Previous was 1,275,000.
This growth is in units. Single Family start fell as multi-family (apartments) increased. This is an interesting statement about what is happening. Rents have soared making apartment building lucrative. The American dream of home ownership has suffered a setback.