U.S. Housing Starts (Mar) Actual 0.51M, Expected 0.54M, Previous 0.57M (Revised from 0.58M)
U.S. Building Permits (Mar) Actual 0.51M, Expected 0.55M, Previous 0.56M (Revised from 0.55M)
Release Explanation: This report covers the number of new residential Starts and residential Building Permits issued each month, reported on an annualized basis. The reports act as leading indicators on housing market sentiment and the overall economy because they have an important influence on new & existing home sales, employment, retail sales, durable goods orders and GDP as new additions are fitted out with fixtures and fittings. “A currency will eventually be affected by these numbers as they are the first phase in the home construction process.” TheLFB-Forex.com Trade Team said.
TheLFB-Forex.com Trade Desk Thoughts: Housing starts fell by 10.8% in March from one month earlier, and is now 48.4% below the March 2008 rate, the Commerce Department said today.
There were 510K houses started in March, while the market forecasted a 540K growth rate. Single-family housing starts represented 358K in March, the same as in February.
Building permits fell at the same pace as housing starts, an indication that future construction could slow. Permits decreased 9.0% to a 513,000 annual rate after being forecast to drop to a 550,000 pace. February was revised higher to 564,000.
Construction of single-family homes fell 7.4% to a 361,000 annual rate. Work on multifamily homes, such as townhouses and apartment buildings, fell to a 132,000 pace.
“After a number of better than expected releases in the previous months, the housing market seems to be resuming its downward path” TheLFB-Forex.com Trade Team members said. “Both building permits and housing starts are down by almost 50% from one year ago, outlining the magnitude of the downturn,” they added.
Forex Technical Reaction: S&P futures have been all over the place this morning, reacting to JPMorgan earnings and this morning’s economic releases. Currently S&P futures are in positive territory but below the highs of the morning. The dollar has not responded to the releases, trading flat since the announcement