(Kitco News) - The U.S. housing market is showing signs of further stabilization as construction activity beats economist expectations, even as it continues to fall.
The number of housing starts in December was 1.43 million, down 4.33% from the revised November tally of 1.525 million, the Department of Commerce said Thursday.
At the same time construction activity is up more than 7% compared compared to December 2022.
Although the housing market remains weak, the data managed to beat economists’ expectations. Consensus forecasts were looking for a rate of 1.43 million units. This is the second month in a row that housing starts have managed to beat initial forecasts.
The gold market is not seeing much reaction to the latest housing data. February gold futures last traded at $2,012 an ounce, up 0.27% on the day.
Along with the smaller-than-expected drop in construction, the report also noted a rise in building permits, which indicate future construction. The number of permits issued increased to a 1.50 million pace last month. Economists were looking for an unchanged reading of around 1.47 million.
Weakness in the U.S. housing market is no surprise to many economists as the sector has struggled in an environment of rising interest rates and higher prices.
Economists are expecting to see a recovery in the housing sector as the Federal Reserve looks to lower interest rates this year.
