US single-family housing starts drop 9 percent in April
Single-family housing starts fell to an annual rate of 930,000 units in April as rising mortgage rates and high inventory levels weighed on the market. Permits for future construction also declined while multi-family projects saw a significant jump in activity during the month.
The United States saw single-family homebuilding tumble 9.0% in April to a seasonally adjusted annual rate of 930,000 units. It is the sharpest decline in recent months as geopolitical conflict drives mortgage rates higher. Investors face a cooling housing market where residential investment has now contracted for five consecutive quarters.
### Geopolitics and Rates Stifle Construction The U.S.-Israel war with Iran has pushed oil prices higher, fanning inflation and lifting U.S. Treasury yields. Because mortgage rates track the 10-year Treasury note, borrowing costs have surged to levels not seen in 18 months. Data from Freddie Mac showed the 30-year fixed mortgage rate averaged 6.36% last week.
