Housing Permits Continue to Increase
There were 74,700 housing permits filed in January 2016. This was the fewest housing permits filed since last January. However, comapred with one year ago, housing permits increased 6.7 percent. This was the third month in a row that housing permits increased month-over-month. The annual rate of growth accelerated for the fourth month in a row. And, the current rate of annual growth of 11.5 percent is the fastest since April 2014.
The real 10-year treasury rate has been rising compared with one year ago for a number of months now. This indicates that housing permits should be near their peak rate of annual growth. Changes in the interest rate lead changes in housing permits and construction spending by about 12 months on average.
We use housing permits as an early leading indicator for the following industries: appliances; custom processors; furniture; hardware; HVAC; off-road/construction machinery; petrochemical processors; plastics; plastic/rubber products; pumps/valves/plumbing products; textiles/clothing/leather goods; and wood/paper products.blog comments powered by Disqus