| Definition:
|
The Housing Starts economic indicator tracks the start of construction of all new residential buildings during the month. The start of construction is defined as excavation for the foundation. The data includes both single-family dwellings and multi-family buildings. The number of applications for building permits for the month is also reported with housing starts data.
|
| Meaning:
|
Housing starts are the pulse of the housing market. The housing sector accounts for 5% of the overall economy. The whole of the housing market cycle - from excavation to moving in - begins with housing starts. Robust starts activity reflects robust economic growth and likewise, slow starts activity reflects slow economic growth. Permit activity helps to forecast the direction of the housing market in the months to come. Housing starts can be quite volatile, particularly during winter months and may be adversely affected by inclement weather.
|
| Weight:
|
***
|
| Source:
|
U.S. Department of Commerce: Bureau of Economic Analysis
|
| Availability:
|
Report released 2-3 weeks following the reference month.
|
| Frequency:
|
Monthly
|
| Coverage:
|
Data are for the previous month (Data for June is released in July)
|
| Volatility:
|
Moderate
|
Impact on the Markets:
|
| Interest Rates:
|
Housing Starts  =
Interest Rates
Housing Starts  = Interest Rates
|
| Fixed-income:
|
Housing Starts =
Bond Market
Housing Starts = Bond Market
|
| Equities:
|
Housing Starts =
Stock Market
Housing Starts = Stock Market
|
| Dollar:
|
Housing Starts = No Reaction
Housing Starts = No Reaction
|
| More Information:
|
U.S. Department of Commerce: Bureau of the Census
|
