US housing starts to rebound to 1.125m annualized in November

US housing starts could well rebound to 1.125m annualized in November, and expecting that strong underlying levels of building permits will continue to fuel construction, while better-than-normal weather this November could inflate the seasonally adjusted print. Moving forward, the big question is whether or not home sales will be strong enough to incentivize builders to continue with new construction. 

New home sales are much higher at the moment than they were last year - but they are also lower than they were to end Q1 2015, so the question of momentum, at least for the moment, remains an open one.