Housing Starts (New Residential Construction)
The Commerce Department gave us this morning’s sole economic report with the release of August's Housing Starts. They announced a 0.8% decline in new home groundbreakings, indicating housing sector weakness. While the headline can be considered favorable news, the decline actually comes as a result of a sizable upward revision to July’s starts. The number of starts in August was higher than analysts were expecting to see. Therefore, we can consider this data neutral for mortgage rates.