March 27, 2015

　　The Census Bureau closely tracks a large number of construction figures, including the much-cited single family housing starts. Single-family starts in February — the most recent month reported — were at a seasonally adjusted annual rate of 593,000, which is 14.9 percent below the revised January figure of 697,000. The February rate for units in buildings with five units or more was 297,000, down over 21% from January’s 379,000.

　　The National Association of Home Builders (NAHB) in conjunction with Wells Fargo, publishes Housing Market Index (HMI), which is a measure of Builder confidence in the market for newly built, single-family homes. Like other similar indexes figures, such as the Purchasing Managers Index (PMI), a number over 50 is positive in that it indicates that more respondents view conditions as good than poor.

　　The most recent measure of the single-family market indicates that although builder sentiment slipped to 53 from February’s 55, it continues to remain in positive territory. NAHB’s chief economist, David Crowe, alluded to job growth, low mortgage interest rates, and pent-up demand in his comments on why it continues in a positive direction in NAHB’s March release.