Housing Permit Growth Accelerates

(Positive) There were 125,400 housing permits filed in June 2017. This was the fourth straight month that permits were above 100,000. Also, this was the most permits in a month since June 2015 and the second most since August 2007. Compared with one year ago, housing permits increased 9.6 percent, which was the sixth straight month of increase. The annual rate of growth accelerated for the fourth month in a row to 5.2 percent, which was the fastest rate of growth since May 2016.

The year-over-year change in the real 10-year Treasury rate, -61 basis points, was the highest since February and the second highest since May 2016. A rising year-over-year change in the real 10-year Treasury rate is negative for housing permits. Changes in the interest rate lead changes in housing permits by about 12 months on average.