- Prior 1.307m
- Building permits 1.412m vs 1.350m expected
- Prior 1.330m
This is still old data as government shutdown in October delayed many key economic reports. The last report was in September where it showed housing starts falling to the lowest level since May 2025. Today's data is the lowest since the Covid pandemic.
There's been persistent housing market weakness due to high mortgage rates and softening labor market. Trump said in a Truth Social post yesterday that he has ordered $200 billion in MBS purchases to lower mortgage rates.
Trump said that large-scale MBS buying would narrow mortgage spreads, push borrowing costs lower, and reduce monthly mortgage payments. He described the move as part of a broader strategy to reverse what he characterised as damage inflicted on housing affordability over the past several years. Housing and mortgage-related stocks rallied following Trump's post.
This is just another example of this administration trying to do everything it can to keep the economy hot. This year we also have the mid-term elections and affordability is one of the key concerns for Americans, so you can see why Trump is focusing more on affordability. It could eventually be negative for the housing market if inflation reaccelerates and the Fed is forced to keep rates higher for longer or even raise them.
