Key Facts
• On September 17, the U.S. Commerce Department released August housing data.
• Single-family housing starts fell 7.0% month-on-month to an annualized 890,000 units.
• Building permits for single-family homes dropped 2.2% to 856,000 units.
• Despite lower mortgage rates, unsold inventory and a softening labor market weigh on demand.
• 30-year mortgage rates hit an 11-month low of 6.35% last week, per Freddie Mac.
• The Federal Reserve is expected to resume rate cuts this week.
Summary
In August, U.S. single-family housing starts declined by 7.0% to an annualized 890,000 units, according to the Commerce Department. Building permits also fell by 2.2% to 856,000 units. Despite a drop in 30-year mortgage rates to 6.35%, the lowest in 11 months, challenges such as unsold inventory and a weakening labor market continue to impact the housing sector. The Federal Reserve is anticipated to resume rate cuts this week, potentially influencing future market conditions.
