(Image Source: Bloomberg )

 

BY MATTHEW PICHT

ANCHOR LAUREN GORES


The numbers for May’s housing industry are in–and it’s a mixed bag. Here’s the official report ...

First, the bad news–housing starts fell almost 5% from April’s revised estimate, reflecting a slowdown in apartment construction. Economists were hoping for more growth in that area. But, on the bright side, the number of building permits issued in May jumped up almost 8%, indicating optimism about future construction projects.

No strong reaction from the market following the release of this report. But Bloomberg says this new housing data, in context, reflects a positive trend.


“And you get this picture on the housing market, Betty, of a slow recovery. We’re not near historic rates of growth and construction or building, but it is improving, and that would be the takeaway.”

While the new housing data is positive to some analysts, others point out the overall industry is still well below where it should be. CNBC’s Steve Liesman notes, ten years ago no one would have batted an eye at these numbers.


“What is now the whole game that we’re hanging our hat on, that 200,000 units were up, was the monthly variation back in ‘03, ‘04, and ‘05.”
 

The housing news comes on the heels of an increased builder confidence index, which is now at a five-year high. National Association of Home Builders CEO Jerry Howard told Fox Business , any progress is worth celebrating.
 

“This has been a long, deep depression in the housing sector, and we’re just really starting to climb out of it. We’ve got a ways to go, but at least we’re climbing upwards and not staying flat.”

The housing report could be a bright spot for the Federal Reserve, as it begins a two-day meeting to assess the state of the economy.