Housing Starts Slump To Lowest Level In Four Years

Residential construction slumped by more than expected in May, reaching its lowest level in four years. Housing starts were down 5.5% from April to 1.28 million annual pace, well below analyst expectations of 1.38 million and down from April’s revised 1.35 million, according to new data from the U.S. Census Bureau. These are the worst numbers since the pandemic put a halt to construction in June 2020. Permits also declined by 3.8% from the month prior to a 1.39 million rate. Analysts had predicted 1.45 million. Permits act as an indicator of future construction. This is the fourth straight month that this future construction indicator has fallen. “Restrictive monetary policy clearly continues to weigh on housing activity,” CIBC Economics’ Ali…

Starts, Permits Plummet As Rates Stabilize Near 7%

Residential construction reversed gains in March, clocking its biggest dip since August 2023 as builders watch rising rates. Starts and permits both slipped in March, according to data from the U.S. Census Bureau. Starts tumbled by a stunning 14.7% month-over-month to a seasonally adjusted annual rate of 1,321,000. This is below all estimates in a Bloomberg survey of economists. Permits were down 4.3% to an adjusted rate of 1,458,000. Both single- and multi-family projects were impacted, with multi-family construction slipping to their lowest point since the beginning of the pandemic. This is a reversal from the month prior’s boost, the result of a wave of construction resuming after winter weather restrained builders at the beginning of 2024. With milder weather,…

June Home Purchase Apps Down 12% YOY

New home purchase applications fell 12% YOY in June, and were down 10% from May, according to the Mortgage Bankers Association’s (MBA) Builder Application Survey. New single-family home sales ran at a seasonally-adjusted annual rate of 620,000 units in June, down 14.7% from May’s pace of 727,000 units. The unadjusted rate was estimated to be 57,000 home sales, down 6.6% from 61,000 in May. New home sales are estimated using mortgage application information and assumptions regarding market coverage and other factors. “Higher mortgage rates and heightened economic uncertainty cooled borrower demand in June, leading to new-home purchase applications declining to the lowest level since April 2020,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.  “Additionally, new…