Housing starts posted a second monthly gain in March, increasing 2.8 percent to a 946,000-unit pace. While the housing recovery hit a snag in December and January due to weather, it is still on track. Although today’s gain is welcome, the reading was below consensus estimates due to a decline in multifamily units.

Single-Family Starts Rebound
Single-family starts increased 6.0 percent in March to a 635,000-unit pace, the second-straight monthly gain. The consecutive gains in single-family starts and an increase in purchase applications should alleviate fears that the housing recovery has lost its luster. We expect single-family starts to increase 19 percent in 2014 and 18 percent in 2015. Multifamily starts fell 3.1 percent on the month to a 311,000-unit pace.