quotingUS Single-Family Housing Starts Rebound in September Amid High Mortgage Rates
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US single-family homebuilding rebounded sharply in September, driven by demand for new construction due to a shortage of previously owned homes. However, the momentum could be slowed by the highest mortgage rates in nearly 23 years. The rebound in housing starts reflects the continued strength of the US housing market, which has been buoyed by low inventory and high demand. Despite the increase in construction, rising mortgage rates and high home prices have dampened homebuilder sentiment in October. This could have implications for the overall housing market in the coming months.
Data released Wednesday provided a mixed picture of the state of the residential housing market in September, with starts rising 7% but permits for future construction slipping 4.4%. Builders are offering upgrades or buying down mortgage rates to keep buyers interested, but rising home prices and mortgage rates approaching 8% mean there will be fewer buyers in the market. Builder confidence fell for the third consecutive month in October, with lower levels of buyer traffic and higher interest rates pricing out some buyers. The rising cost of home insurance, especially in states like Florida and California, is also impacting the eagerness of people to buy new homes. Existing home sales are expected to drop by 4% in September due to the rising cost of mortgages and a lack of available houses for sale.
US single-family homebuilding rebounded in September, boosted by demand for new construction amid an acute housing shortage, but the highest mortgage rates in nearly 23 years could slow momentum and delay the overall housing market recovery. Single-family housing starts increased 3.2% to a seasonally adjusted annual rate of 963,000 units last month. However, the rebound in homebuilding probably reflected permits approved several months ago before mortgage rates broke above 7%. Mortgage rates have risen in tandem with the yield on the benchmark 10-year Treasury note, which has spiked to more than a 16-year high. Residential investment has contracted for nine straight quarters, the longest such stretch since the housing market bubble burst, triggering the 2008 global financial crisis and the Great Recession. Permits for future construction of single-family homes rose 1.8% to a rate of 965,000 units, the highest since May 2022. Multi-family building permits dropped 14.0% to a rate of 459,000, the lowest level since October 2020. The single-family homebuilding backlog was unchanged at 142,000 units, while the completions rate for this segment increased 5.3% to 998,000 units. The number of housing under construction dropped 0.7% to a rate of 1.676 million units.
Reuters
https://www.investing.com/news/economic-indicators/us-singlefamily-housing-starts-rebound-sharply-in-september-3202054
Hellenic Shipping News Worldwide
https://www.hellenicshippingnews.com/us-manufacturing-output-rises-solidly-in-september/
Reuters
https://theedgemalaysia.com/node/686818
U.S. News
https://www.usnews.com/news/economy/articles/2023-10-18/new-homes-market-feeling-pressure-of-high-mortgage-rates-home-insurance-premiums
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