U.S. housing starts rose in July. Amid limited supply in the second-hand housing market, an increase in single-family housing starts drove overall sales.
Key points Housing starts up 3.9% month-on-month at an annualized rate of 1,452,000 units The median forecast for the previous month was revised down to 1,398,000 units (preliminary estimate: 1,434,000 units) Single-family housing starts were 6.7% Home construction permits increase by 1,442,000 units – 0.1% month-on-month increase Median is 1,463,000 Single-family housing permits rise to highest level in over a year
Upper row: number of detached house construction starts, lower row: number of detached house construction permits
Source: U.S. Department of Commerce
Bloomberg Economics economist Eliza Winger said: “Demand for new homes has been picking up recently, but the Fed has signaled it’s willing to keep rates higher and longer, and credit conditions are likely to continue. Residential investment is likely to continue to dampen economic growth on the back of a tightening economy and a slowing labor market.”
Mortgage interest rates are on the rise again as the Fed’s stance to keep policy rates higher and longer is becoming clearer. The August housing market index released by the National Association of Home Builders (NAHB) and Wells Fargo fell for the first time this year.
US 30-Year Mortgage Rate Rises to 7.16%, Matching Highest Since 2001
In July, both the number of apartment construction starts and the number of construction permits fell. Construction starts fell 1.7% to their lowest level since September 2021.
By region, the number of construction starts reached the highest level since April 2010 in the western part of the country. It also increased in the Northeast and Midwest, and decreased in the South.
See table for detailed statistics.
Original title:US Housing Starts Advanced in July on Single-Family Construction(excerpt), US July Housing Starts Rose to 1,452k Annualized, Above Est. (excerpt)
(Updates to add economist’s view below chart)
2023-08-16 12:55:58
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