In July, the Northeast saw housing starts jump from 116,000 to 134,000, while starts rose from 171,000 to 175,000 in the Midwest.
The U.S. Census Bureau published the July housing data on August 16. The release was well above market forecasts. Housing starts rose by 2.1% to 1,211,000.
The CPI (consumer price inflation), published by the U.S. Bureau of Labor Statistics, remained unchanged in July. The energy index fell by 1.6% in July.
In June, the total foreclosure inventory fell 26% from a year ago to 375,000 homes. This works out to be about 1% of all homes with mortgages.
Planned job cuts rose 19% in July compared to June. However, they fell 57% YoY (year-over-year) in July.
Average hourly earnings rose $0.08 month-over-month in July 2016 and 2.6% year-over-year to $25.61.
In July 2016, non-farm payrolls rose by 255,000. Non-farm payrolls easily topped Wall Street analysts’ estimate of 185,000.
There isn’t much in the way of market-moving economic data this week. One of the highlights will be the JOLTS job openings data on Wednesday.
In the quarter ending June 30, 2016, public construction spending fell to 1.5% on a month-over-month basis.
In June, housing starts rose to an annualized rate of 1.2 million from 1.1 million the month before. Building permits rose from 1.1 million to 1.2 million, as well.
In June, the share of existing home sales attributable to the first-time homebuyer was 33%—up 3 percentage points from May.
In June 2016, private construction fell 0.6%, and public construction fell 0.6% month-over-month.
In the quarter ending June 30, construction spending as a percentage of GDP slipped to 6.1%. Over the past 50 years, the average has been closer to 8.4%.
In June 2016, existing home sales reached an annualized ~5.6 million. In May, existing home sales were ~5.5 million.
The NAHB Wells Fargo Housing Market Index peaked at 71 during the height of the housing bubble in late 2005.
Overall, permits for single-family residences rose slightly from 731,000 to 738,000. Multifamily permits rose from 389,000 to 405,000.
In June 2016, housing starts rose from 1.1 million to ~1.2 million. We also saw increases in both single-family and multifamily starts.
Like most of the other builders, D.R. Horton (DHI) has been reporting lower gross margins due to sticker shock.
D.R. Horton (DHI) reported net income of $294.8 million, or $0.66 per share, for 3Q16.
D.R. Horton (DHI) sounded relatively optimistic on its conference call. It was clearly happy with the most recent quarter despite the stock price reaction.