American housing starts dive to two-year minimum

American housing starts dive to two-year minimum

In March, American homebuilding went down to an almost two-year minimum, suppressed by ongoing weakness in the single-family housing segment, dropping a hint that the housing market kept struggling notwithstanding decreasing mortgage rates.

Housing starts headed south by 0.3% to a seasonally updated annual rate of 1.139 million units in March, which appears to be the lowest result since May 2017, as the Commerce Department informed on Friday.

February’s data was updated downwards to demonstrate homebuilding decreasing to a tempo of 1.142 million units versus the previously posted 1.162 million-unit rate.

Building permits inched down by 1.7% to a rate of about 1.269 million units in March that happens to be the lowest outcome for five months. Eventually, building permits have slumped for three straight months. As for permits for single-family housing, they decreased to a more than 1-1/2 year minimum last month, which is an adverse omen for starts in the nearer future.

Financial analysts interviewed by Reuters had predicted that in March housing starts would tack on to a tempo of 1.230 million units.

The everlasting weakness in homebuilding reflects land as well as labor shortages, not to mention costly building materials.

Tuesday’s poll revealed that despite builders posted firm demand for new homes, they kept highlighting affordability worries stemming from an everlasting shortage of construction employees as well as buildable lots.

As a matter of fact, the 30-year fixed mortgage rate has gone down from November’s maximum of nearly 4.94% to 4.12%, as follows from data provided by mortgage finance agency Freddie Mac.

Furthermore, single-family homebuilding went down by 0.4% hitting 785,000 units the previous month that turns out to be the lowest reading since September 2016.

Similar

Latest news

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera