Housing Permits Flat in February

(Negative) There were 84,500 housing permits filed in February 2017. This was the lowest level for permits since January 2016. Compared with one year ago, housing permits were unchanged, which was the the second time in three months that permits did not grow. The annual rate of growth decelerated to 0.3 percent, which was the slowest since October 2011.

The change in the real 10-year treasury rate was less negative for the fourth month in a row in February, meaning that the real 10-year treasury rate is a negative signal for housing permits. Changes in the interest rate lead changes in housing permits and construction spending by about 12 months on average.