Housing starts rebound as mortgage rates drift lower
Builders broke ground on more single-family homes in September, the first sizeable gain since spring, as the average 30-year mortgage rate slipped below 6.2%.
Housing starts rose 6.1% in September to an annual pace of 1.41 million, driven by single-family construction in the South and Midwest. Permits, a guide to future activity, climbed for the second month.
The risks to watch
Builder sentiment is still subdued, and many firms continue to offer rate buydowns to move inventory. Existing-home sales remain near their lowest level in three decades because owners with cheap pandemic-era mortgages are reluctant to sell.
Economists caution that a single reading rarely settles the debate. Revisions to earlier months have been large this year, and the gap between survey data and hard data remains unusually wide. Policymakers have said they will keep watching a broad set of indicators before changing course.
Builders broke ground on more single-family homes in September, the first sizeable gain since spring, as the average 30-year mortgage rate slipped below 6.2%.
What comes next
This article is for information only and is not investment advice. Figures are illustrative and may be delayed or simulated for demonstration purposes.
For information only — not investment advice.
