How Does Housing Starts Affect Stocks & ETFs?

Housing Starts counts the number of new residential construction projects begun during a month. Building Permits measures authorized permits for future construction. Together, they indicate the health and direction of the housing sector.

Housing is one of the most interest-rate-sensitive sectors of the economy. Starts and permits respond directly to mortgage rates (driven by Fed policy). The housing sector has knock-on effects across materials, furnishing, appliances, and financial services.