{"id":1977110,"date":"2023-07-19T08:44:02","date_gmt":"2023-07-19T12:44:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-fall-8-despite-other-signs-of-a-warming-housing-market\/"},"modified":"2023-07-19T08:45:21","modified_gmt":"2023-07-19T12:45:21","slug":"housing-starts-fall-8-despite-other-signs-of-a-warming-housing-market","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-fall-8-despite-other-signs-of-a-warming-housing-market\/","title":{"rendered":"Housing starts drop 8% despite positive housing market indicators."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhousing-starts-fall-8-despite-other-signs-of-a-warming-housing-market%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1977110&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The Housing\u200b Market Faces\u2064 Challenges as \u200dHousing Starts Decline<\/h2>\n<p>The number of housing starts declined in June, signaling ongoing challenges in\u200b a housing market \u2064that has recently shown signs of heating \u2064up. This\u2064 comes\u2064 after being impacted\u200b by \u2062the Federal Reserve&#8217;s\u200c rate \u2064hikes.<\/p>\n<p>Housing \u200dstarts \u200cmeasure\u2062 the change\u200b in the number\u2062 of new\u200d residential\u200c buildings that began construction. According to a Wednesday report from the Census \u200cBureau,\u2064 starts fell 8%\u200b from May \u200dto this \u2062past month, now \u200bstanding\u200c at\u2064 1.43 million. Compared\u2063 to May \u20642022, they\u200d fell 8.1%.<\/p>\n<p>For \u2064permits to build, which \u2062serve as\u2062 a proxy for future construction, the\u2063 seasonally \u2064adjusted annual \u200brate of\u2064 new permits last month \u2063was \u206315.3% lower than the rate \u200din \u2063May \u200cof the previous year.<\/p>\n<p>This latest report\u2063 will undoubtedly be closely watched, considering the\u2063 unique situation that\u200c the national\u200d housing\u200b market\u200d finds \u200ditself in.<\/p>\n<h3>The Complex \u2062Dynamics\u200d of the Housing \u200cMarket<\/h3>\n<p>The housing market experienced a red-hot period \u200dduring much of the pandemic, thanks \u2063to the Federal \u2062Reserve&#8217;s near-zero\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-government-is-distorting-the-housing-market\/\" title=\"How The Government Is Distorting The Housing Market\">interest rate target<\/a>. This resulted in ultra-low\u200c mortgage rates \u2063for\u200b homebuyers, driving\u200b a surge in\u200d demand and causing prices \u2063to rise while construction boomed.<\/p>\n<p>However, the equation changed last year when \u2064the Fed raised rates \u200cand \u2064mortgage \u200crates \u200dsoared\u2064 above 7%. Demand quickly fell, leading to what\u2064 many economists referred to as a &#8220;housing\u200c recession&#8221; and a \u200bdecline in prices.<\/p>\n<p>Now, the \u200dsituation has\u200c become more complex.\u200b Mortgage \u2063rates remain \u200chigh, reaching their highest levels \u200dsince\u2062 November. \u200dHowever, prices\u200d have started \u200cto increase. This is\u200b primarily due to a lack \u200dof\u2063 supply for existing homes, driving demand \u2063for new\u2063 homes\u2063 and new construction. Sellers are taking advantage\u2062 of \u2063the scarcity by raising \u200ctheir prices.<\/p>\n<p>Homeowners who locked\u2064 in sub-3% mortgage rates during the pandemic are \u200bholding\u2064 onto \u200btheir homes, \u2064avoiding \u200cputting\u2064 them on\u2063 the market because they would have to take out\u2064 new loans at much\u200d higher rates to buy again. As a result, prospective \u200cbuyers are turning \u2064to new\u2064 homes.<\/p>\n<p>In May, existing home\u2064 sales\u200b were down over\u2062 20% \u2063compared\u200d to the previous year. However, new home sales\u2062 rose 12.2% to a\u200c <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-home-prices-are-up-nearly-25-since-this-time-last-year\/\" title=\"Report: Home Prices Are Up Nearly 25% Since This Time Last Year\">seasonally adjusted annual rate<\/a> of \u200b763,000.\u2064 Sales \u2062were \u200d20% higher\u200b than in\u200c May 2022.<\/p>\n<p><strong>The\u200c Fed&#8217;s\u2064 Impact on \u2063the \u2064Housing Market<\/strong><\/p>\n<p>The Federal \u2064Reserve still\u2063 has more rate hikes \u200dto come. While it paused its tightening cycle at its last meeting, it is\u200c highly \u200clikely\u200c that central\u200c bank \u2063officials will\u200c raise rates \u200bat \u2064least once more\u2062 later \u2062this month before \u200dreassessing in September.<\/p>\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-fall-8-despite-other-signs-of-a-warming-housing-market\/\" title=\"Housing starts drop 8% despite positive housing market indicators.\">current interest \u200dtarget set<\/a> by the central \u200bbank is 5% to\u200c 5.25%.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here<\/a> \u2064to read more \u2062from The Washington Examiner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>in June dropped, revealing ongoing obstacles in a housing market that had started to recover from the impact of the Federal Reserve&#8217;s interest rate increases. Housing starts gauge the fluctuation in the quantity of newly initiated residential constructions.<\/p>\n","protected":false},"author":1,"featured_media":1977111,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-1977110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1977110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1977110"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1977110\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1977111"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1977110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1977110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1977110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}