Housing Permits Spike in March

(Positive) There were 111,900 housing permits filed in March 2017. This was the highest level for permits since June 2016 and the second highest level since June 2015. Compared with one year ago, housing permits increased 14.5 percent. This was the third straight month of growth and the seventh in the last eight months. Also, permits grew faster than 14 percent in two of the last three months. The annual rate of growth accelerated to 1.0 percent, which was the fastest rate of growth since November 2016.

The change in the real 10-year treasury rate was more negative in a row in March, 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.