U.S. housing starts pull back in April - TD Bank Financial Group

According to ActionForex, analysts at TD Bank Financial Group note that the U.S. housing starts pulled back in April, giving back a part of the gain recorded in March.

"U.S. housing starts fell by 9.5% to 1.57 million units (annualized) in April from a downwardly-revised 1.73 million units in the month prior. The outturn came in below market expectations, which called for a decline to 1.71 million units. Looking past the month-to-month volatility, starts have trended near the 1.6 million mark since December."

"The decline was concentrated in the single-family segment, where starts fell by 13.4% (or 164k) to 1.09 million units. Starts in the smaller, more volatile multi-family segment, meanwhile, rose by 0.8% to 482k units, adding to the 26.5% gain in the month prior."

"A pullback in homebuilding activity in April was expected given the outsized (20%) gain that occurred in the month prior. The flat trend near the 1.6 million mark that has developed over the last several months is solid, but nothing to write home about."

"A confluence of factors suggest that homebuilding should resume a more positive trend in the months ahead. Indeed, as more Americans get vaccinated, the reopening of the economy and the continued healing of the labor market will lend additional support to housing demand. Meanwhile, alongside this improving demand environment, a dearth of inventory, which sits at a record low when it comes to existing homes, will continue to encourage the building of more homes in the months ahead."