A day after homeBUILDER sentiment finally cracked (though still dramatically more 'confident' than homeBUYERS)...

...and mortgage rates are rebounding higher, Housing Starts and Building Permits expectations were mixed ahead of this morning's print.

The actual data was indeed mixed but both were disappointly below expectations as Starts rebounded just 1.6% MoM (below the +4.0% exp) from the 10.1% MoM collapse last month (small revision higher) while Permits (more forward looking) plunged 4.7% MoM (vs -1.2% MoM)...

That is the biggest MoM drop in Permits since March 2024, dragging the SAAR down tits lowest since July 2024...

The drop in Permits was largely driven by a huge 5.1% MoM drop in Single-Family apps (multi-family fell 4.4% MoM) - the biggest drop since Dec 2022...

Housing starts were dominated by multi-family unit increases (for the third month in a row) as Renter Nation returns...

Interstingly Starts picked up modestly despite the plunge in Homebuilder future sales expectations.,..

Perhaps the most shocking chart - that explains why builders are not building single-family homes is that inventories of unsold NEW homes is surging...

So, don't bank on The Fed to save the day.

...as multi-family unit starts surged...
{ai:summary}Homebuilder sentiment has declined, while mortgage rates are rising. Housing starts increased by 1.6% month-over-month, but this fell short of the expected 4.0%. Building permits saw a significant drop of 4.7%, the largest since March 2024, indicating a slowdown in future construction.Single-family home applications fell sharply by 5.1%, while multi-family units saw an 11.1% increase. The rise in unsold new home inventories suggests builders are hesitant to focus on single-family homes, despite modest increases in starts. Expectations for rate cuts are not providing relief. #economy

Single-Family Home Permits Plunged In April, But 'Renter Nation' Returns

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