Housing Starts Down in November

Single-family housing starts in November were at a rate of 677,000, which is 5.4 percent below the revised October figure of 716,000, according to data released this morning by the U.S. Census Bureau and the Department of Housing & Urban Development (HUD). Privately-owned housing starts in November were at a seasonally adjusted annual rate of 1,028,000, which is 1.6 percent below the revised October estimate of 1,045,000 and is seven percent below the November 2013 rate of 1,105,000.

Privately-owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,035,000, which is 5.2 percent below the revised October rate of 1,092,000 and is 0.2 percent below the November 2013 estimate of 1,037,000. Single-family authorizations in November were at a rate of 639,000, which is 1.2 percent below the revised October figure of 647,000.

Privately-owned housing completions in November were at a seasonally adjusted annual rate of 863,000, which is 6.4 percent below the revised October estimate of 922,000, but is 4.5 percent above the November 2013 rate of 826,000. Single-family housing completions in November were at a rate of 596,000, which is 2.9 percent below the revised October rate of 614,000.

A preview of the dismal state of November’s starts numbers was evidenced in yesterday’s report of a one-point decline in builder confidence level, as recorded by the National Association of Home Builders/Wells Fargo Housing Market Index. Today’s numbers also echoed last Thursday’s Mortgage Bankers Association Builder Application Survey data for November, which found mortgage applications for new home purchases decreased by 22 percent relative to the previous month.