US home building permits near 13-year high, housing starts fall less than expected

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US home building permits near 13-year high, housing starts fall less than expected

On Wednesday, the 19th of February 2020, US homebuilding data had reflected a robust US hosing market as US house building permit climbed to a near 13 year high, while US housebuilding fell less-than-anticipated in January with US 30-year fixed mortgage rate residing at 3.47 per cent, the lowest level since October 2016, data from mortgage finance agency Freddie Mac had revealed.

On top of that, following release of Wednesday’s (February 19th) US homebuilding data, several analysts were quoted saying that a beefed-up US housing market would likely to assist the US economy to sustain its longest economic expansion in record currently at its straight 11th year of gain in a row.

According to Wednesday’s (February 19th) US homebuilding data which appear to have skied up leveraging a multi-month low mortgage rate following three Fed interest rate cuts last year, a revised reading for US homebuilding in December rose by 1.626 million units, while hosing starts climbed 21.4 per cent in January compared to the same time a year earlier and home building permits surged by 9.2 per cent to 1.551 million in January, marking up its highest level since March 2007.

Meanwhile, referring to an Apollonian image of the US economy, a Chief Economist at MUFG in NY, Chris Rupkey said followed by the release of Wednesday’s (February 19th) US housing data, “The economy looks good with residential home building activity beating expectations and a little more producer price inflation, even if the data overstate how well the country is doing in terms of generating the growth and inflation the Federal Reserve wants to see. ”