Here come housing starts ...

The Census Bureau is set to release the latest numbers on housing starts and building permits at 8:30 a.m. ET.

Economists estimate that housing starts increased 1% at an annualized pace of 1.186 million in July, according to Bloomberg. They forecast that building permits fell 8% at an annualized pace of 1.23 million.

In a preview of the data to clients, Wells Fargo's Sam Bullard wrote that building permits are likely to decline following the expiration of New York City tax incentives that increased the number in June.

"On balance, housing market activity has been on an upward trend in recent months," he wrote. "In Q2, total housing starts averaged a 1.14 ­million unit annualized pace, the strongest quarterly pace in almost eight years. On continued improvement in the labor market, elevated homebuilder confidence, easing bank lending standards, and low interest rates, we expect housing demand to remain solid in the second half of the year."

We'll be back with the latest once the data cross.