Housing Starts Preview

June Housing starts are set to be released at 8:30 a.m. ET by the U.S. Census Bureau, with consensus estimates of 1.125 million. and a estimate range of 1.085 million to 1.2 million. This follows May's somewhat tepid reading of 1.036 million. Housing permits in June are expected to come in at 1.178 million, with a range of 1.07 million to 1.265 million. Permits in May, conversely, showed strength, rising nearly 11 percent to a eight year high at 1.275 million. Starts and permits have been volatile in recent months and are expected to remain so in June, with an expected 8.6 percent monthly gain in starts, but a 7.6 percent decline for permits, a reverse of May's readings. Even with such a mix, both readings would point to solid health for residential construction. A housing start is defined as the start of construction of a new building intended primarily as a residential building, with the start commencing with excavation of the foundation. The housing starts report is the most closely followed report on the housing sector, since it indicates the commitment of builders to new construction activity.