By Dr Denver H. Bubble
Nationwide in June housing starts were down 12.9%, they rebounded a little in July to up 0.9% but sorely missed expectations of a 7.4% increase. Two of four US regions posted a gain in starts, with the South increasing 10.4% and the Midwest increasing by 11.6 %. In the Northeast, it declined 4% and the West, our home region, tumbled 19.6%, the largest drop since January 2017.
It looks like the Federal Reserve rate hikes which are feeding higher mortgage costs and the increases in housing inventory for the last three month are creating a future bottleneck in housing supply if the trends continue.
Image source: Zerohedge