From our colleagues at our sister company, Argent Trust:
In this morning’s data, Housing Starts were 1,793,000 in March, a bit more than expected and a 0.3% increase from the previous month. In addition, Building Permits were 1,873,000 in March, also a bit more than expected and an increase of 0.4% for the month. Overall, only slight increases in both housing starts and building permits from the previous month as rising interest rates have pushed the average 30-year fixed mortgage rate above 5.25%. Even with the rise in mortgage rates, the housing shortfall still argues for builders to build and complete homes. With affordability an issue in many parts of the country, the Federal Reserve will need to closely monitor this dynamic in the coming months as they work through their policy tightening given housing activities support and filter through to many other parts of the economy. In all, the 10-year US Treasury yield ticks slightly higher and equity futures are also slightly higher as we head into the market open.
This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice, and does not take into account all the circumstances of each investor. Forward-looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.