17 Jul 2014
US June construction data disappoints - ING
FXStreet (Łódź) - Teunis Brosens from ING suggests that today's weaker than expected US housing numbers suggests construction is stagnant at best.
Key quotes
"The weakness of June construction figures has not prevented homebuilders from turning increasingly bullish."
"In yesterday’s NAHB homebuilder sentiment survey, builders reported increasing numbers of sales and prospective buyers, although both sub-indices remain lower than a year ago."
"Homebuilders are also becoming more optimistic about the outlook for the coming months. The question remains what their optimism is based on."
"Mortgage applications for house purchases, that provide an early yet volatile indication of housing demand, have been moving sideways for most of this year, and are not showing any signs of a pickup."
"The next big event for the housing market is going to be the Fed exit strategy, with details possibly announced at September’s FOMC."
"Mortgage rates reacted strongly after Bernanke’s initial tapering comments last year, it might be wise to now brace for the Yellen-effect."
Key quotes
"The weakness of June construction figures has not prevented homebuilders from turning increasingly bullish."
"In yesterday’s NAHB homebuilder sentiment survey, builders reported increasing numbers of sales and prospective buyers, although both sub-indices remain lower than a year ago."
"Homebuilders are also becoming more optimistic about the outlook for the coming months. The question remains what their optimism is based on."
"Mortgage applications for house purchases, that provide an early yet volatile indication of housing demand, have been moving sideways for most of this year, and are not showing any signs of a pickup."
"The next big event for the housing market is going to be the Fed exit strategy, with details possibly announced at September’s FOMC."
"Mortgage rates reacted strongly after Bernanke’s initial tapering comments last year, it might be wise to now brace for the Yellen-effect."