US Housing Starts Declined, But Stayed Near 11-Year High
Housing starts in the US fell in April. Bookmarking new homes reached an 11-year high just a month earlier, and experts were expecting some digression.
The US Commerce Department reported, that housing starts declined by 3.7% to a seasonally adjusted annual rate of 1.287 million units in April. Building permits dropped by 1.8% to 1.352 million units. Economists had forecast housing starts falling to a pace of 1.310 million units last month and permits declining to a 1.350 million-unit rate.
Single-family homebuilding rose by 0.1% to a rate of 894.000 units last month. These homes make up the bulk of the market for new homes in the US. Permits for the construction of single-family homes grew by 0.9% to a rate of 859.000 units in April.
A broader picture shows that the housing market has been growing for years because of low interest rates and a better job market in two decades, but rising mortgage rates may cause compression. For example, the cost of a mortgage loan reached a seven-year high, and this affected the recent decline in the number of applications for mortgages.