by New Deal democrat
Yesterday construction spending for August was reported. While overall spending rose very slightly, residential construction fell -0.7%.
The big issue with housing this year is whether higher mortgage rates and higher prices are leading merely to a deceleration of growth, or to an actual turning point. Yesterday’s report adds to the evidence that it is the latter rather than the former.
My detailed post is up at Seeking Alpha.
As usual, besides being informative, reading the post also rewards me a little bit for my efforts.
UPDATE: I was looking for something else this morning, and found this.
Two months ago, discussing the June residential construction report, I wrote:
As interest rates have ticked higher in the last several months, I expect permits to continue to be flat, and residential construction should follow in a few months.
And indeed, permits have since been a little worse than flat, and residential construction has indeed followed. As I point out from time to time, you’re reading the right blog!