Housing Starts (New Residential Construction)
January's Housing Starts was posted at 8:30 AM ET this morning. The Commerce Department announced a 9.7% increase in new home groundbreakings, exceeding forecasts. The larger than expected rise is being attributed to a 34.7% spike in starts in the Northeast alone. Still, the stronger number of new starts makes the data bad news for bonds and mortgage rates because strong economic conditions make bonds less attractive to investors. Fortunately though, this report is not considered to be highly influential, preventing much of an impact on today’s rates.