US: Expect February housing starts to increase 0.8% - BMO CM

Strategists at BMO Capital Markets expect US February starts to increase 0.8% to 1.256 million units annualized, continuing the oscillating but increasing pattern.

Key Quotes

“Housing starts have been very choppy of late, but continue to exhibit a rising trend. For example, the December-January duo registered the fastest new construction pace (over a two-month interval) in more than 7½ years.”

“The underlying rising trend reflects the inventory of existing homes available for sale being reduced to record lows (relative to sales), while housing demand continues to expand. The latter, in turn, is being driven by the same factors driving retail sales (see above), along with attractive affordability, easing mortgage lending standards, and unwinding pent-up demand (mostly from first time purchasers).”