Housing starts missed expectations rising 5.9% to an annualized rate of 896,00 units in July.
This missed expectations for a 7.7% rise to an annualized rate of 900,000 units.
June numbers were revised up to show a 7.9% fall to 846,000.
Meanwhile, building permits also came in shy of expectations rising 2.7% to 943,000.
This was below expectations for a 2.9% to 945,000. June’s number was also revised up to show a 6.8% fall to 918,000.
The run up in homebuilder confidence should point to stronger housing starts, but Paul Diggle at Capital Economics argue that NAHB has a “history of over-exuberance as a predictor of starts.”