US August housing starts 1.307M vs 1.365M expected

• Prior starts 1.428M
• Starts change -8.5% vs +5.2% prior
• US August building permits 1.312M vs 1.37M expected
• Permits change -3.7% vs -2.2% prior

This is a poor reading and it is near the bottom of the post-covid range. Rate cuts will start to stimulate US housing so long as 30-year yields come down. If the Fed gets too dovish, we could see curve steepening and in that case then current 6.5% rates are as good as we’re going to get.

This article was written by Adam Button at investinglive.com.