Yes, Housing Starts Surge, but Rentals Are the Drivers
By Diana Olick, CNBC Correspondent
NEW YORK ( CNBC) -- The headline number for housing starts was big, exceeding expectations and sending the home builder stocks on yet another tear.
Starts hit 894,000 (annualized) in October, over 50,000 more than the analysts forecast. Housing starts are now at their highest level since July 2008.
"We expect the builder equities will react positively initially, but then fade through the day once the report is fully digested as 'multifamily' was the key driver of the results," warned Stephen East at ISI.There is no question that home builders are benefiting from tight supply in the existing home market and overall improved consumer confidence. That was apparent in the home builder confidence numbers released this week, which hit the highest level in six years.
| More from CNBC
Twitter Sees a Surge in Retailer Activity
Drum Roll, Please...And the Favorite Adult Beverage Is...
These 'Turkey Stocks' Soaked in Tryptophan?
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts