Housing Starts Weaker Than Expected

Housing starts and permits came in weaker than expected, with starts at 1.009 million vs. expectations of 1.028 million. Permits were softer as well, printing at 1.080 million compared to consensus of 1.035 million. Most of the weakness is attributable to a drop in multi-family homes, dropping 15.2 percent. Single-family homes showed a gain of 4.2 percent, the largest since November 2013. The housing market has been aided by record low mortgage rates, with the 30-year mortgage hovering at 4 percent vs. nearly 4.4 percent from a year ago. The markets showed little reaction to the news, as investors await the Fed minutes later today.