Economic News Blog
Posted by: Steven Kline, Jr. 2. December 2019

Housing Permits Hit Highest Rate Since June 2015

There were 131,700 housing permits filed in October 2019. The month-over-month change in permits was 17.0%, growing at an accelerating rate for the fourth-straight month. September’s rate of month-over-month growth was the fastest since November 2015.

In October, the annual rate of change grew 2.2%, accelerating for the second month in a row. The annual rate of growth will continue to accelerate in the months ahead as the three-month rate of change was 13.8% in October.

The trend in the 10-year Treasury rate is indicating growth in housing permits, too. In October, the year-over-year change in the real 10-year Treasury rate was -0.77%, which was the 10th month in a row that the change was negative, meaning the rate dropped from what it was one year ago.

The change in the 10-year Treasury rate is a good leading indicator of housing permits and construction spending. A decreasing year-over-year change in the real 10-year Treasury rate should lead to increases in these data points down the line.

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