THE US ANNUAL RATE OF CHANGE IN HOUSING GREW AT AN ACCELERATING RATE FOR THE THIRD MONTH IN A ROW

St. Paul, MN (January 6, 2020) — According to Steven Kline, Jr., Chief Data Officer with Gardner Business Media, there were 107,500 housing permits filed in November 2019. This was the lowest level for housing permits since March 2019. However, permits in November 2019 were 6.4% higher than they were in November 2018. Therefore, November was the fifth consecutive month of growth in housing permits.

In November, the annual rate of change accelerated to 2.4%, which made it the third-straight month of accelerating growth. The annual rate of growth will likely continue to accelerate in the months ahead, as the three-month rate of change was faster than 13% for the second month in a row.

The trend in the 10-year Treasury rate is indicating growth in housing permits, too. In November, the year-over-year change in the real 10-year Treasury rate was -0.63%, which was the 11th month in a row that the change was negative, meaning the rate dropped from what it was one year ago.

The change in the 10-year Treasury rate is a good leading indicator of housing permits and construction spending. A decreasing year-over-year change in the real 10-year Treasury rate should lead to increases in these data points down the line.

Matsuura Machinery USA, Inc., located in St. Paul, MN is the U.S. subsidiary of Matsuura Machinery Corporation in Japan. Since 1935, Matsuura has been the forerunner in designing innovative technology and manufacturing solutions to a variety of industries around the globe. Matsuura Machinery USA, Inc. delivers unmatched excellence in 5-axis, vertical, horizontal, linear motor, multi-tasking CNC machine tools and machines with a powder bed metal AM platform with machining capability. Matsuura Machinery USA, Inc. provides the service, applications and technical field support that have always been the Matsuura standard for business.

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