There were 116,000 housing permits filed in March 2020. Permits filed in March were up 9.7% compared with one year ago, which was the ninth consecutive month of growth in housing permits.

In March, the annual rate of growth accelerated to 7.4%, which made it the seventh-straight month of accelerating growth. This was the fastest rate of annual growth since May 2018. Because of the strong monthly growth rate since September 2019, the annual rate of growth may continue to accelerate for another month or two before it is significantly affected by COVID-19. 

The real 10-year Treasury rate, which is the nominal rate minus the rate of inflation, was -1.06%. This was the third consecutive month the real rate was negative. And, it was the lowest negative real rate since July 2012. In March, the year-over-year change in the real rate was -133 basis points. The change was negative for the 15^th month in a row. This was the lowest level for the year-over-change since  December 2016. And, this was the lowest level for the change since July 2012.

The change in the 10-year Treasury rate is a good leading indicator of housing permits and construction spending. A decreasing year-over-year change in the real 10-year Treasury rate typically leads to increases in these data points down the line. However, decreased economic activity from COVID-19 may prevent that this cycle.