US DATA: Aug housing starts +10.5% to 598k with gains in multis
(+32.2% to 160k in a continuing bounce after June’s plunge) and in
1-Family (+4.3% to 438k). Aug permits +1.8% to 569k, with 1-fam permits
-1.2% to 401k suggesting some pause ahead. Starts are at their best
level since April and had their biggest gain since Nov09, both signs of
hsg recovery that is being bolstered by low rates and good affordability
due to lower prices and foreclosure supply overhang. By region, starts
in the NE -24.3%, MW +21.7%, South +7.0%, West +34.3%. Hsg completions
were 603k in Aug, suggesting the pipeline remains in balance. Overall,
this was a better than expected report.