US housing starts to rebound in August – Nomura

Analysts at Nomura expect the US housing starts to rebound in August to an annualized pace of 1210k, up 3.6% from July.

Key Quotes

“Both single- and multifamily housing starts were weaker than expected in July with pronounced softness in the West Census region, possibly related to disruptions from wildfires.”

“We expect a rebound in August, likely driven by volatile multifamily housing starts, based on incoming housing permits data. However, we remain conservative on residential investment as a whole.”

“For building permits, we expect a modest 0.2% m-o-m increase to an annualized pace of 1305k.”