U.S. single-family homebuilding rises in April
2023.05.17 11:05
© Reuters.
Investing.com — Single-family housing starts in the U.S. grew in April from a heavily lowered level in the prior month, suggesting an uneven recovery in the property market even as a decline in mortgage rates tempts potential homebuyers.
According to data from the Commerce Department on Wednesday, single-family housing starts during the month increased to a seasonally-adjusted annual rate of 846,000 units, a jump of 1.6% compared to the downwardly revised March figure of 833,000. Housing starts typically make up a large portion of homebuilding.
Authorizations for the construction of single-family properties, meanwhile, advanced by 3.1% month-on-month to a rate of 855,000 units in April.
Hopes that the will push pause on a recent campaign of interest rate hikes have helped to bring mortgage rates down from peaks touched in late 2022. The average rate on the popular 30-year fixed mortgage came in at 6.35% last week, according to data from mortgage finance agency Freddie Mac cited by Reuters, below the high of 7.08% reached last November.
Economists have suggested that the cooling in mortgage rates has contributed to more homebuyers choosing to venture once again into the real estate market. However, credit conditions have tightened in the wake of March’s turmoil in regional banks, which could weigh on the ability of homebuilders to finance upcoming projects.
On an overall basis, which factors in construction projects for buildings with five units or more, edged up 2.2% versus the prior month to , while dipped by 1.5% to .
