U.S. housing starts likely to have rebounded modestly in July

U.S. housing starts are expected to have increased in July. In June, housing starts had risen 8.3 percent to a 1.215 million-unit rate. With unseasonably warm weather to start the year, June’s rise marked the first positive reading for starts since February of this year, noted Wells Fargo in a research report.

In single family starts has seen a steady but gradual improvement; however, multifamily starts have begun to slowed down in the wake of a multiyear sharp rise in apartment market building. Housing starts in July is expected to have modestly improved in housing starts. According to Wells Fargo, the housing starts is likely to have risen 1.2 percent to a 1.229 million unit rate.

“As we look ahead to the second half, we estimate that housing starts will total 1.24 million 2017 and improve to a 1.32 million unit pace in 2018 as single-family building activity begins to pick up amid a tight supply of existing homes”, added Wells Fargo.

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