U.S. Housing Starts Plummet in July, Building Permits Edge Down
2022.08.16 16:06
By Geoffrey Smith
Investing.com — The number of housing starts across the U.S. fell sharply in July as the combination of rising prices and more expensive mortgage loans took more heat out of an overstretched market.
The Census Bureau said housing starts fell nearly 10% to 1.446 million in July, their lowest since August 2020, and well below a consensus forecast of 1.540 million. They’re now 11.9% below their levels of a year ago.
Building permits, meanwhile, held up somewhat better. The number of new permits edged down by 1.3% – less than expected – to 1.674 million from 1.696 million a month ago.
The figures add to evidence of a significant slowdown in a market that had been overheated by stimulus policies which created record-low borrowing rates at a time when the pandemic was already stoking demand for single-family homes in particular.
The numbers come a day after the National Association of Home Builders’ housing market survey which showed a sharp drop in activity over the last month.
