*SCALPSWINGSTRADDLE*

[Zephyr]

Housing Starts
Released On 12/18/2013 8:30:00 AM For Nov, 2013
Prior Prior Revised Consensus Consensus Range Actual
Starts - Level - SAAR 0.889 M 0.952 M 0.925 M to 1.000 M 1.091 M
Permits - Level - SAAR 0.974 M 1.039 M 0.995 M 0.970 M to 1.055 M 1.007 M
Highlights
Today's report contains new data for housing starts in September, October, and November as the Census Bureau finally catches up from the effects of the federal government shutdown. Permits for September and October were released earlier.

Housing starts surged in November-and this time it was not just the multifamily component. Housing starts in in November jumped 22.7 percent after rising 1.8 percent in October. The November starts annualized level of 1.091 million units topped expectations for 0.952 million units and was up 29.6 percent on a year-ago basis. September starts were 0.873 million and October was 0.889 million.

The gain in starts was led by the multifamily component which increased 26.8 percent after dipping 2.0 percent in October. The single-family component also was strong in November, jumping 20.8 percent after a 3.8 percent increase the month before.

Permits declined but after a strong October. This time strength is in the single-family component. Permits decreased 3.1 percent in November after gaining 6.7 percent the month before. The 1.007 million pace was up 7.9 percent on the year.

Strength was in the single-family component which improved 2.1 percent after a 1.0 percent rise in October. The multifamily component dropped 10.8 percent after jumping 16.4 percent in October. The multifamily component is up 3.9 percent on a year-ago basis while the single-family component is 10.5 percent.

Housing regained some momentum over the last three months. Between recently strong retail sales and housing starts numbers, fourth quarter growth may be moderately strong. Today's data add to odds that the Fed may taper somewhat with this afternoon's policy statement.