After small rebounds in July (after three ugly months prior), August was expected to see those gains consolidate but the picture was extremely mixed with Starts spiking 9.2% MoM and Permits plunging 5.7% MoM.

The surge in Starts is the best month since January 2018 The plunge in Permits is the worst month since Feb 2017   This suggests a rough time ahead for housing as Permits plummet to the lowest since May 2017.

  All of which suggests homebuilder stocks have further to fall.

Categories: ZH