Housing Starts (New Residential Construction)
This week’s economic calendar started at 8:30 AM ET this morning when August's Housing Starts report was posted. It showed that new home groundbreakings rose 3.9% last month, exceeding expectations. A secondary reading that tracks newly issued permits, giving an indication of future groundbreakings, also rose much more than predicted (up 6.0%). Both readings can be considered bad news for bonds and mortgage rates, but this report doesn’t carry a high level of significance to traders. Accordingly, we have seen a minor reaction to the data.