Prior 1.307mBuilding permits 1.412m vs 1.350m expectedPrior 1.330mThis is still old data as government shutdown in October delayed many key economic reports. The last report was in September where it showed housing starts falling to the lowest level since May 2025. Today’s data is the lowest since the Covid pandemic.There’s been persistent housing market weakness due to high mortgage rates and softening labor market. Trump said in a Truth Social post yesterday that he has ordered $200 billion in MBS purchases to lower mortgage rates.Trump said that large-scale MBS buying would narrow mortgage spreads, push borrowing costs lower, and reduce monthly mortgage payments. He described the move as part of a broader strategy to reverse what he characterised as damage inflicted on housing affordability over the past several years. Housing and mortgage-related stocks rallied following Trump’s post.This is just another example of this administration trying to do everything it can to keep the economy hot. This year we also have the mid-term elections and affordability is one of the key concerns for Americans, so you can see why Trump is focusing more on affordability. It could eventually be negative for the housing market if inflation reaccelerates and the Fed is forced to keep rates higher for longer or even raise them.
This article was written by Giuseppe Dellamotta at investinglive.com.
💡 DMK Insight
Building permits just came in higher than expected, but here’s the kicker: housing starts are at a pandemic low. This discrepancy is crucial for traders. While permits at 1.412 million suggest potential future construction activity, the drop in housing starts indicates a serious slowdown in actual building. With the government shutdown delaying key reports, this data might not fully reflect current market conditions. If you’re trading in real estate or related sectors, keep an eye on these numbers. They could signal a shift in sentiment, especially if the trend continues. Watch for how this impacts related assets like construction stocks or even broader indices. If housing starts don’t rebound, we could see a ripple effect across the economy, affecting everything from consumer spending to mortgage rates. So, monitor the next set of reports closely. If housing starts remain low, it could lead to bearish sentiment in the housing market and beyond.
📮 Takeaway
Watch for upcoming housing start reports; if they stay low, expect bearish sentiment in real estate and related sectors.






