Housing Losing Its Luster
It doesn't appear that the housing market is going to save us from slower economic growth.
This week’s economic calendar was almost devoid of data as all the important stuff was squeezed into last week’s releases. About the only data we got this week was housing starts and permits along with the relatively useless builder sentiment report.
Starts and permits data haven't budged that much on a year-over-year basis versus past trends. So it doesn't appear that the housing market is going to save us from slower economic growth. The GDPNow forecast remains at 2.5% for the second quarter after this week's data release, and we continue to believe that looks too high based on the consumption numbers they are using.