US Building Permits in September Rose 6.3%, Housing Starts Declined 9%

According to the Census Bureau and Department of Housing and Urban Development, new building permits for private homes in September was at an annual rate of 1.1225 million on a seasonally-adjusted basis. This is 6.3% above the August level of 1.152 million (revised up from 1.139 million) and 8.5% higher than the same month a year-earlier. Analyst on average were looking for a rate of 1.165 million, according to a Thomson Reuters Survey.

The number of new privately-owned housing starts was at pace of 1.047 million annually on a seasonally-adjusted basis, 9% below the August revised data of 1.15 million (from 1.142 million). Compared to a year-ago, the rate of housing starts for September was 11.9% higher.

The number of completions for privately-owned homes in September was at a seasonally-adjusted annual rate of 951,000, a decline of 8.4% from the August rate of 1.038 million, and 5.8% lower than the September 2015 rate of 1.01 million.

The US dollar had a small knee-jerk reaction to the news. The ICE US Dollar Index is currently edging lower on the day by 10 bps to 97.79. December gold future are trading up by 74 bps to $1,272.50 per ounce. US Index futures are indicating a slightly stronger open; S&P 500 futures are trading higher by 2.75 points, or 0.13%, to 2,134.75.

Paul is a market analyst for with over 7 years of experience trading forex and 20 in the financial industry. He provides actionable analysis combining both the fundamental and technical aspects of an asset. Paul specializes in indices, commodities and forex. He received his Bachelor’s degree in economics and government at Hobart College.