While the US stock market has been on an unprecedented bull market run (thanks in part to The Federal Reserve), the US housing market has only been on a bull run since February 2012.

But housing starts (particularly the single-family detached market) have been slow to come back after the disastrous overbuilding during the housing bubble years. In fact, 1 unit housing starts are back to 1990-1991 recession levels. Despite staggering Federal Reserve stimulus.

The May housing starts numbers were released and they continue to show slow going for housing starts.  Housing starts declined 5.54% MoM from April to June, not what was expected by housing cheerleaders. 1-unit starts fell 3.87% MoM.

5+ unit (multifamily) starts fell almost 10% from April to March. Particularly since the huge surge in June 2015.

Fed rate hikes have consequences.

Building permits way out west fell a whopping 13%!

Here is a video of Fed Vice Chair Stanley Fischer closely monitoring the housing market and the Fed’s impact on it.