Housing Starts Fell Hard in April

The Census Bureau just reported that Housing Starts in April fell by 30.2% to an annualized growth rate of 891k as new Building Permits plunged by 20.8%. Pre-release surveys expected a Starts drop of just 26% while Permits had been anticipated to fall by 25.9%. Despite the sharp declines in both measures, yesterday’s report from the National Association of Home Builders showed that its Housing Market Index actually improved to 37 from 30.

The Treasury market has begun its day with prices slipping by a few 32nds here and there. The Ten-Year’s yield has edged up to around 74 basis points. Equity markets are poised to open slightly in the red after yesterday’s huge rally. WTI remains above $32/barrel while gold is little changed at $1,733.