The promise offered by July’s strong housing permits was realized in a nice bounceback to August’s housing starts. These new numbers demonstrate that builder confidence — which recently reached an annual high — is translating into action.
Home builders are standing strong in the face of growing economic uncertainties, including the threat of a recession. Their hopefulness is buoyed by the fact that mortgage rates fell again in August, which helps keep would-be home buyers thirsty for new inventory.
New home building has struggled to break out this year, but new construction jobs and now this healthy boost in housing starts indicate that home building is not going to fall off a cliff. It’s not flashy, but this sign of resilience is welcome news for a housing market which is still struggling to grasp some momentum.