Savvy Trades and Investments

[cliffvb]

Housing starts were weaker than expected in June. Some believe that higher costs and an uptick in interest rates is having a negative effect.

I think the drop is only temporary. The number tends to be volatile going from month to month. Much of the drop was in multifamily starts (vs single family). Also permits were actually up slightly from the previous month. Also, with strong demand, I think builders were more anxious to break ground earlier than normal this year.

Homebuilder stocks have moved down on the news though.

http://www.builderonline.com/money/economics/starts-permits-down-sharply-in-june_o

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