by Mish Shedlock, MishShedlock:
The often volatile housing starts numbers took another dive this report, down 18.7% in November according to the Census Bureau New Residential Construction report for November 2016.
Housing starts 1959-Present
Year-Over-Year Detail Since 1994
New Residential Construction Details
Permits down 4.7% from October
Permits down 6.6% from year ago
Starts down 18.7% from October
Starts down 6.9% from year ago
Completions up 15.4% in October
Completions up 25% from year ago
Mortgage Rates Soar
Mortgage rates have risen 104 basis points (1.04 percentage points) since July 8.
As I have pointed out, this is bound to affect the housing market sooner or later. Sooner means now.
Each quarter-point hike will affect mortgage rates correspondingly until the long end of the curve refuses to rise further. At that point, we will be in recession.
Still think three hikes are coming in 2017?
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