BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager
Announced this morning, Housing Starts indicated there were 1.314 million units started in October, an increase of 3.8% over the previous month. While a bit below forecasts, units rebounded from previous levels and growth was seen in both single family and multi-family homes. Meanwhile, Building Permits indicated there were 1.461 million permits issued in October, an increase of 5.0% over the previous month, above forecasts. While housing is only a small portion of GDP, less than 4%, it is an interest rate sensitive portion of the economy and it is reassuring to see it rebound given the recent rate cuts by the Federal Reserve. Should housing figures continue to strengthen, it could provide additional support to the slow growing economy in the months ahead. In all, bond yields ticked slightly lower following the report and equity futures remained higher heading into the market open.
This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Forward-looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.