What is the importance of housing starts and building permits?
Housing starts measure when “excavation begins for the footings or foundation,” building permits are a total of the number of “housing units authorized” to be built. These forward-looking reports are considered a meaningful barometer of housing, which has a major impact on consumer spending. Good examples of this are represented by the purchase of appliances, building materials, furniture, other home furnishings and landscaping for these new homes. Consumer spending is also supported by the various ways home equity can be turned into buying power for whatever purchase they wish or consolidate debt using home equity loans, lines of credit or refinancing their existing mortgage(s). Equity is also turned into buying power when trading up for a bigger home, or trading down for a smaller home and utilizing the difference for other purchases or debt reduction. With consumer spending accounting for nearly two-thirds of all economic activity, these reports are one of several key reports monito
