Housing Starts (September 2012)
– Starts were 872,000 (seasonally adjusted, annualized)
– Previous was 758,000
– Permits were 894,000. Previous was 801,000.
One of the interesting things about this and recent improvements in Housing Starts is the increase in multifamily (5+ units.) Multifamily was up 25%. Housing Starts are in units. A single family home is 1 unit. A 24 unit apartment building is 24 units.
I live in San Francisco. Within 4 blocks of my home there are 6 mixed use buildings under construction and 2 lots prepared for contruction. There are about 475 apartments total in these. The largest of these was ready to start about 4 years ago when the liquidity crisis happened and the builder lost his construction financing. It was the lack of construction financing which slowed Starts to a crawl.
MBA Mortgage Applications (week ended 10/12/2012)
Purchase Index – Week/Week +1.0%
Refinance Index – Week/Week -5.0%
Composite Index – Week/Week -4.2%
The Treasury techs are all bearish (lower prices, higher yields) Expect higher Treasury yields and mortgage rates until at least the end of October.