Here Comes Housing Starts...

Economists polled by Bloomberg are looking for housing starts to rise 2.3% on the month to an annualized rate of 917,000. This compares with a 5.9% rise to 896,000 in July.

Building permits are expected to fall 0.4% on the month to an annualized rate of 950,000. This compares with a 2.7% rise to 943,00 in July.

Bank of America analysts point out that permits typically lead housing starts by two months, which is why they expect housing starts to rise 4.4% to 935,000. They also argue that their view is "bolstered" by the run up in homebuilder confidence.

We have previously mentioned that homebuilder confidence has been outpacing housing starts.