Housing Permits Surged in January

(Positive) There were 86,800 housing permits filed in January 2017. This was the lowest level for permits since February 2016. Compared with one year ago, housing permits increased 16.0 percent, which was the fastest rate of growth since November 2015 and was one of the fastest rates of growth in more than three years. The annual rate of growth accelerated to 0.9 percent. Housing permits should see acelerating growth for at least the next month or two.

The change in the real 10-year treasury rate was less negative for the third month in a row in January, meaning that the real 10-year treasury rate is now 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.