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By Geoffrey Smith
Investing.com -- The U.S. housing market stayed reasonably solid in June, according to data published Tuesday, with housing starts and building permits falling only a little from May's levels.
Both data points had plunged in May to their lowest in six months or more, as higher construction costs and soaring rates for mortgages hurt affordability. However, June's data appeared more benign: the number of housing starts nationwide fell only 2.0% on the month to 1.559 million from an 1.591 million in May - a figure that was revised higher by over 40,000 from the initial estimate.
Building permits, meanwhile, fell by 0.6% to 1.685 million, a more gentle decline than forecast.
As such, the data do little to validate the worst-ever monthly drop in the National Association of Home Builders' index of housing market activity, which shook the market when it was released on Monday. The NAHB index is a forward-looking indicator, however, which aims to show where the hard data on permits and starts are heading over the next six months.