Housing Starts Dive 18.7 Percent: Mortgage Rates Soar

By: Mike Shedlock | Fri, Dec 16, 2016
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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

Housing starts 1959-Present


Year-Over-Year Detail Since 1994

Housing Starts Year-Over-Year Detail Since 1994


New Residential Construction Details


Mortgage Rates Soar

Average Fixed Mortgage Rates 2012-2016

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?

 


 

Mike Shedlock

Author: Mike Shedlock

Mike Shedlock / Mish
Mish Talk

Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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