The latest data reveals a significant decline in new residential construction, with both single-family and multifamily homes experiencing a sharp drop. This decrease, the largest in four years, is attributed to the impact of rising mortgage rates on housing activity.
In March, housing starts plummeted by 14.7% on a monthly basis, falling from an annualized pace of 1.55 million units to 1.32 million units, as reported by the Census Bureau. Single-family starts also saw a notable decline of 12.4% month over month.
Chief economist Jeffrey Roach from LPL Financial notes that these figures suggest a slowdown in the growth rate of new home construction.
With potential homebuyers expressing reluctance to purchase homes at this time, it is anticipated that residential investment will become a hindrance to GDP growth in the upcoming quarters. The stabilization of housing activity may not occur until the Federal Reserve initiates an easing cycle.
This recent government data follows a period of stagnant builder sentiment in April, marking a departure from four consecutive months of…
2024-04-16 13:18:45
Source from finance.yahoo.com