Housing Starts Surge to Highest Since Nov 2007, Permits At 7 Year Highs

Following two ugly months of dramatically missed expectations, Housing Starts exploded to 'recovery' highs (highest since Nov 2007) jumping 20.2% MoM to 1.135million (against 1.015 exp.). This is the 2nd biggest MoM jump in history. Both single-family (3rd biggest MoM surge since the crisis peak) and multi-family starts surged. Permits also surged in April (jumping 10.1% MoM - the most since 2012) to 1.143 million (well above expectations) and the highest since June 2008.  and  Well these huge mal-investment spikes make perfect sense in light of the collapse in lumber prices (and thus demand).

Starts Soar:

 

Permits spike:

 

And the breakdown between single family (to own) and mult-family (to rent):

Starts:

 

And Permits:

Which all makes perfect sense: