Housing Starts Surged in July

The U.S. Census Bureau reported this morning that Housing Starts in July grew by a much greater-than-expected 22.6%. Pre-release estimates were only expecting 5% growth as June’s 17.3% growth rate was revised to 17.5%. For new Building Permits, July saw that measure jump by 18.8% against an expectation of just 5.4%. Revisions also took June’s 2.1% gain to a 3.5% boost. Some see this level of activity as a sign that the challenges of the pandemic and heightened levels of civil unrest have motivated many Americans to relocate.

Market reactions are muted as slightly higher Treasury prices leave the Ten-Year’s yield at around 67 basis points. Crude oil is mostly unchanged at around $42.75 while gold has rallied almost $30 to $2,014. Equity futures point to a slightly positive opening.