US single-family housing starts plunge; building permits hit 3-1/2-year low
SPY•Single-family housing starts fell 4.6% in September to an annual rate of 859,000, while permits dropped 4.0% to 845,000, their lowest level since March 2023. Overall housing starts fell 5.2% to 1.221 million.
1. Single-family starts fall
Single-family housing starts fell 4.6% in September to a seasonally adjusted annual rate of 859,000, the lowest level in a year. Starts declined in the South, Midwest and West, but rose in the Northeast; they were up 2.6% from a year earlier.
2. Permits decline
Single-family building permits fell 4.0% to an annual rate of 845,000, their lowest level since March 2023, and were down 4.8% year over year. Overall housing starts decreased 5.2% to 1.221 million, below economists’ forecast of 1.305 million, while overall permits fell 0.2% to 1.400 million.
3. Costs weigh on demand
The report linked housing weakness to higher mortgage rates and reduced demand. Freddie Mac data showed the 30-year fixed mortgage rate averaged 7.40% last week, its highest level in nearly three years. Slumping sales and unsold-home inventory also reduced developers’ incentive to begin new projects.
