From our colleagues at our sister company, Argent Trust:
Announced this morning, Housing Starts were higher than expected at 1,427,000 in November, which is a -0.5% decrease from the revised figure from the previous month. Building Permits were much lower than expected at 1,342,000 in November and a decrease of -11.2% from the revised figure from the previous month.
Overall, a mixed report on housing in November, as starts were better than expected but still lower than the previous month and permits declined markedly in the month. In addition, the overall levels for starts and permits are lower than they were earlier in the year, both down by more than 140k since August, as the impact of policy tightening by the Federal Reserve has taken shape through both interest rate increases as well as reducing their balance sheet. While some parts of the economy appear to be slowing, such as housing, the labor market remains resilient. The timing of when the Fed’s actions hit the labor market coupled with how much other parts of the economy have slowed when that occurs is an important dynamic as we move into the coming year.
In all, the 10-year US Treasury yield is little-changed and equity futures are mixed as we head into the market open. Happy Holidays!
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