US Housing Starts Surge 9.6% in August Linked to Lower Mortgage Rates
US Housing Starts Surge 9.6% in August
US housing starts surged 9.6% in August, rebounding after a sharp decline the previous month. This rise highlights a recovery, spurred by lower mortgage rates, which have improved builder sentiment.
Housing Starts and Permits
- New construction reached an annualized rate of 1.36 million, exceeding expectations.
- Building permits jumped 5%, indicating future construction activity.
Inventory and Mortgage Rates
Despite the surge, builders face pressures from high unsold inventory levels, the highest since 2008. However, falling mortgage rates are expected to stimulate home sales gradually.
Homebuilder Stocks React
As investor confidence grows, the iShares US Home Construction ETF has increased 20% in three months, reflecting optimism in the housing market.
Regional Performance
Housing starts rose 15.5% in the South, rebounding from a prior slump.
Market Outlook
Experts caution about the sustainability of this recovery, predicting potential declines in housing starts unless affordability improves further.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.