US housing starts for November 1.560M vs 1.360M estimate. Best since May.

<ul><li>Prior month housing starts 1.359M </li><li>Housing starts November 1.560 million versus 1.360 million estimate. Big jump</li><li>Building permits 1.460 million versus 1.465 million estimate</li><li>Housing starts MoM +14.8% versus +0.2% last month (was 1.9%)</li><li>Building permits MoM -2.5% versus +1.1% last month</li></ul><p>The supply of homes are the story line. Higher rates have not helped that dynamic. Builders have been subsidizing the buyers at their expense. </p><p>Mortgage rates are coming down which may be encouraging more building and may also lighten the incentives in the process. We will see how the story line plays out. . </p>

This article was written by Greg Michalowski at www.forexlive.com.