Housing starts slump in June as building challenges persist
foxbusiness.comProChain President David Tawil explains why he predicts rate hikes are on the horizon and likely to stay high 'for a number of years.'
New U.S. home construction tumbled in June after rising the previous month, the latest sign that challenges within the housing market persist.
Housing starts slid 8% last month to an annual rate of 1.43 million units, according to new Commerce Department data released Wednesday. That is slightly above Refinitiv economists' forecast for a pace of 1.48 million units.
In a sign the deep freeze that has paralyzed the housing market for months is not over yet, applications to build – which measures future construction – fell 3.7% over the course of the month to an annualized rate of 1.44 million units. Compared with the same time last year, building permits are down about 15.3%.
COMMERCIAL REAL ESTATE MARKET COULD CRASH SOON. HERE’S WHY
A house for sale in Arlington, Virginia, on July 13, 2023. (Saul Loeb/AFP via Getty Images / Getty Images)
«While homebuilders are remaining confident in the market with overall sentiment increasing again in June, the new construction market remains a rocky landscape,» said Nicole Bachaud, Zillow senior economist. «Increasing costs and labor shortages are still impacting builders' ability to meet the demand for new housing.»
The data comes one day after the National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, rose one point to 56, the highest reading since June 2022. Any reading above 50 is considered positive.
Sentiment has been steadily rising as a worsening inventory shortage buoys consumer demand for new homes.
MORTGAGE CALCULATOR: SEE HOW MUCH HIGHER RATES COULD
Read more on foxbusiness.com
