U.S. housing starts and building permits unexpectedly fell in June, suggesting the housing market recovery was struggling to get back on track
after stalling in late 2013.
Groundbreaking declined 9.3 percent to a seasonally adjusted annual 893,000 million unit-pace, the lowest since September, the Commerce Department said on Thursday. April’s starts were revised to show a steeper 7.3 percent fall instead of the previously reported 6.5 percent drop.
Economists polled by Reuters had forecast starts rising to a 1.02 million-unit rate last month.
Housing has been constrained by higher mortgage rates. A shortage of properties for sale has pushed up prices, reducing affordability for many.
But there are glimmers of hope for the sector. A survey on Wednesday showed confidence among single-family home builders hit a six-month high in July, amid optimism over sales over the next six months.
Groundbreaking for single-family homes, the largest part of the market, tumbled 9.0 percent in June to a 575,000-unit pace, the lowest since November 2012. Single-family starts in the South dropped to their lowest level in two years.
Starts for the volatile multi-family homes segment dropped 9.9 percent to a 318,000-unit rate.
Permits fell 4.2 percent to a 963,000-unit pace in June.
via Reuters
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza
Latest posts by Alfonso Esparza (see all)
- Gold Rises Ahead of Fed Meeting - 09/24/2018
- Wall Street Lower as Washington Drama - 09/24/2018
- Barrick Gold to Buy Randgold for $6.5 Billion Creating Largest Gold Producer - 09/24/2018