Housing Starts and Permits Stalling as Builders Face Headwinds

Residential construction slowed in July. Both the rate of permitting and of housing starts were down from the prior month and starts were the worst in more than four years. The U.S. Census Bureau and the Department of Housing and Urban Development said overall starts declined 6.8 percent from June levels and, at a seasonally adjusted annual rate of 1.238 million, were 16.0 percent lower than in July 2023. Single-family starts dropped by 14.1 percent to a rate of 851,000, a 14.8 percent annual decrease. Multifamily starts, at the rate of 363,000, represented an 11.7 percent increase from the prior month but a 21.8 percent year-over-year decline. On a non-adjusted basis, construction started on 113,000 residential units in July, 79,800 of which were single-family dwellings. In June, the corresponding numbers were 124,000 and 94,400. [housingchartall] Permitting was only slightly better. They were issued at an annual rate of 1.396 million during the month, down from 1.454 million in June. That was a -4.0 percent change for the month and -7.0 percent on an annual basis. Single-family permits were virtually unchanged from the previous month at 7938,000 and 1.6 percent lower than the same period last year while permits for construction in buildings of five or more units dropped to 408,000 from 466,000. This is 12.4 and 18.2 percent lower than in the two earlier periods. On an unadjusted basis, permits were issued for 125,600 units, including 85,600 single-family houses. Both numbers were nearly identical to those in June. [housingpermitschart]

August 16, 2024 Download our Mobile App: Download our Mobile App: Housing News Housing Starts and Permits Stalling as Builders Face Headwinds Residential construction slowed in July. Both the rate of permitting and of housing starts were down from the prior month and starts were the worst in more than four years. The U.S. Census Bureau and the Department of Housing and Urban Development s... (read more) MBS Commentary Quiet Friday Despite Early Volatility At first glance, the first half of the trading day has been volatile for the bond market, but at second glance, trading levels are just returning in line with the same narrow, sideways ranges seen for most of the day yesterday. In... (read more) Rob Chrisman Verification, Social Media, Warehouse Tools; Virtual STRATMOR CX Workshop; FHA News On a sad note, entrepreneur “Famous Amos” passed away a few days ago. Cookies are a major food group for me, and here was a fellow who had fun and made money providing a simple product and helping consumers! Home loans sure aren’t simple, but here in... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.56% -0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.56% -0.02 0.00 15 Yr. Fixed 6.14% -0.01 0.00 30 Yr. FHA 6.10% -0.02 0.00 30 Yr. Jumbo 6.73% -0.01 0.00 7/6 SOFR ARM 6.38% -0.02 0.00 30 Yr. VA 6.12% -0.02 0.00 Updates Daily - Last Update: 8/16 15 Yr. Fixed Rate 6.14% -0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 6.49% +0.02 0.00 15 Yr. Fixed 5.66% +0.03 0.00 Updates Weekly - Last Update: 8/15 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.54% -0.01 0.57 15 Yr. Fixed 5.96% -0.07 0.65 30 Yr. Jumbo 6.78% +0.01 0.37 Updates Weekly - Last Update: 8/14 MBS / Treasuries UMBS 30YR 5.5 100.59 +0.12 Price / Yield Change MBS UMBS 5.5 100.59 +0.12 UMBS 6.0 101.76 +0.08 GNMA 5.5 100.59 +0.12 GNMA 6.0 101.32 +0.05 Pricing as of: 8/16 5:31PM EST 10 Year US Treasury 3.8826 -0.0286 Price / Yield Change US Treasury 2 YR Treasury 4.054 -0.038 5 YR Treasury 3.758 -0.028 7 YR Treasury 3.797 -0.025 10 YR Treasury 3.883 -0.029 30 YR Treasury 4.138 -0.031 Pricing as of: 8/16 5:31PM EST Latest Video How new real estate agent commission rules impact the housing industry Former Fed Vice Chair Clarida: My inclination is 25 bp September cut, but 5... Sentiment survey better than expected for August Housing starts, permits hit lowest levels since June 2020 Around the Web CNBC This common credit score myth could hurt your score, says FICO expert The Basis Point CHART: Late Mortgage Payments Track Almost Exactly To Unemployment Rate Marketwatch New-home construction plunges to lowest level since May 2020 CNBC Here's the deflation breakdown for July 2024 in one chart CNBC Treasury yields fall as investors digest economic data Marketwatch One-third of home builders are slashing prices as confidence in the market falls to 8-month low Calculated Risk Blog MBA: Mortgage Delinquencies Increased in Q2 2024 Eye on Housing Townhouse Construction Gains Continue NAR July 2024 Rental Report: Renting a starter home continues to be a more affordable option than buying one in all 50 metros Calculated Risk Blog Housing Starts Decreased to 1.238 million Annual Rate in July Eye on Housing Homes Built in Age-Restricted Communities Eye on Housing Builder Confidence Moves Lower as Market Waits for Rate Cuts Calculated Risk Blog Early Q3 GDP Tracking: Low-to-Mid 2%

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