At first glance, the latest US housing starts report looks solid. Privately-owned housing starts jumped 7 percent from February to March. The March figure of 1.036m units was the first above 1 million in five years.
A look under the hood, however, reveals that the headline figure was lifted by multi-family units. The seasonally adjusted annual rate for units in buildings with five units or more was 392,000 in March, a seven-year high. The last time multi-family starts was higher than that[January 2006], single-family starts were north of 1.8 million.
FX Strategist [Series 3, 34]