In this morning’s data, Housing Starts were 1,555,000 in September, weaker than expected and a decrease of -1.6% from the previous month, partly due to fewer starts in multi-family homes. In addition, Building Permits were 1,589,000 in September, much weaker than expected and a decrease of -7.7% for the month. Overall, a weak report on housing data in September following the growth seen in August. Like other industries, the housing market has experienced price increases in recent months, as labor has been tight, costs for materials have increased, and interest rates have remained low. Fiscal stimulus and accommodative policy have contributed to these dynamics and the Federal Reserve likely remains on track to taper asset purchases in the near future. In all, the yield on the 10-year U.S. Treasury ticks slightly higher and equity futures are also higher as we head into the market open.
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