{"id":2003415,"date":"2023-08-17T09:16:01","date_gmt":"2023-08-17T13:16:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-housing-starts-surge-in-boost-to-economy\/"},"modified":"2023-08-17T09:20:10","modified_gmt":"2023-08-17T13:20:10","slug":"us-housing-starts-surge-in-boost-to-economy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-housing-starts-surge-in-boost-to-economy\/","title":{"rendered":"US Housing Starts Surge in Boost to Economy"},"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\">16<\/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%2Fus-housing-starts-surge-in-boost-to-economy%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=2003415&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--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<h2>US Single-Family Homebuilding Surges Amid \u2064Housing Shortage<\/h2>\n<p>WASHINGTON\u2014In a remarkable display of resilience, single-family homebuilding in\u2064 the \u2063US soared in July, accompanied by a rise in permits for future \u200dconstruction.\u200d This surge comes at a time when the market is grappling with\u200c a shortage of previously owned houses. However, \u200dthe housing market&#8217;s progress may face a hurdle as mortgage rates climb back to near two-decade highs.<\/p>\n<p>The Commerce Department reported a\u200d sharp rebound in groundbreaking on single-family housing units, defying predictions of\u2064 a \u2063recession. This positive news follows the strong growth in\u200d retail sales in July, prompting economists to revise their \u200cgrowth estimates\u2064 for the third quarter.<\/p>\n<p>Economists believe that, with inflation retreating, the recent stream of positive data is unlikely to lead to another interest rate hike next\u200c month.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/world\/after-higher-inflation-reports-finance-minister-highlights-underlying-strength-of-canadas-economy-5467615\">After\u2064 Higher Inflation Reports, Finance Minister Highlights &#8216;Underlying \u2063Strength&#8217; of Canada&#8217;s Economy<\/a><br \/>\n        <br \/>\n        <span class=\"text-[14px] leading-[18px] text-[#737373]\">8\/15\/2023<\/span>\n      <\/li>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/stock-market-today-wall-street-drops-as-faltering-chinese-economy-sets-off-global-slide-5467795\">Stock Market Today: Wall \u200dStreet Drops as Faltering Chinese Economy Sets\u200c Off Global Slide<\/a><br \/>\n        <br \/>\n        <span class=\"text-[14px] leading-[18px] text-[#737373]\">8\/15\/2023<\/span>\n      <\/li>\n<\/ul>\n<\/blockquote>\n<p>&#8220;Housing generally has shown resilience, but Fed officials\u2062 may overlook this\u200d latest\u200d news of strengthening demand in \u2064the economy when\u2064 it comes to judging whether to hike rates again this\u200d year because of\u2064 the progress made on the inflation front,&#8221; said Christopher Rupkey, chief economist at\u2062 FWDBONDS\u200b in New York.<\/p>\n<p>Single-family housing \u200dstarts,\u200d which account for the majority of homebuilding, jumped 6.7 percent\u200b to a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-increase-as-housing-market-sends-mixed-signals\/\" title=\"Housing starts rise amidst conflicting housing market signals.\">seasonally \u200cadjusted annual rate<\/a> of 983,000 units in July. Year-on-year, they rose by 9.5 percent. The West saw the\u200c largest increase\u200d in groundbreaking, with \u200dsingle-family starts soaring by 28.5 percent.<\/p>\n<p>The Midwest\u2064 also experienced a significant rise of 12.5 percent in starts. However, the Northeast and the densely populated South saw declines of \u20643.4 percent and 1.3 percent,\u200b respectively.<\/p>\n<p>After enduring\u200c the impact of the Federal\u200d Reserve&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fannie-mae-warns-about-americas-economic-future\/\" title=\"Fannie Mae Warns About America\u2019s Economic Future\">aggressive monetary policy tightening<\/a>, the \u200chousing market has\u200b stabilized. However, the recent increase in mortgage rates is expected to limit further \u2064improvement.<\/p>\n<p>According to \u200dthe latest data from mortgage finance agency Freddie \u200cMac, the average rate on the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-plunge-as-home-prices-set-new-record\/\" title=\"Mortgage Rates Plunge as Home Prices Set New Record\">popular 30-year fixed mortgage<\/a> has risen to 6.96 percent in recent weeks. This \u2064rate \u200dis approaching the highest \u200clevel since April 2002, which was 7.08 percent.<\/p>\n<p>The rise in mortgage rates has led to a decrease in confidence among homebuilders in August. The National \u2063Association of Home \u200bBuilders reported \u200bthat more builders are offering incentives to attract buyers, anticipating lower sales.<\/p>\n<p>Since \u2064March\u2063 2022, the Federal Reserve has\u200c raised its benchmark \u200dovernight interest rate by 525 basis points \u200dto the current range \u200dof \u200c5.25 percent to 5.50 percent. Demand for rental accommodation,\u2062 driven by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-housing-starts-surge-in-boost-to-economy\/\" title=\"US housing starts soar, giving economy a boost.\">higher mortgage rates sidelining potential home buyers<\/a>, is slowing down. Additionally, there is a record number of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-housing-starts-rebound-in-august-building-permits-decline\/\" title=\"U.S. housing starts rebound in August; building permits decline\">multi-family housing units<\/a> under construction.<\/p>\n<p>Overall, housing starts \u200cincreased by 3.9 percent to a rate of 1.452 million units in July,\u200c slightly surpassing economists&#8217; expectations.<\/p>\n<p>&#8220;The need for new single-family homes, driven by the scarcity\u2062 of existing home inventory, \u200dshould provide support \u200dfor single-family construction,&#8221; said Nancy Vanden Houten, U.S.\u200c lead economist at Oxford \u200cEconomics in New York. &#8220;Homebuilders increased their use of incentives again in August, which may support sales and prevent a steep decline in single-family \u200dstarts.&#8221;<\/p>\n<p>Permits for future construction \u200bof single-family homes rose by 0.6 percent in\u2064 July to a rate\u200d of 930,000 units. This marks the sixth consecutive month \u200dof permit increases, driven by \u200crises \u2064in\u2064 the Midwest and \u200dSouth. However, permits for single-family building fell in the Northeast and \u200dremained unchanged in the West.<\/p>\n<p>Permits for housing projects with five units or more fell by 0.2 percent to\u200c a rate of 464,000 units, reaching\u2062 the lowest level since October 2020. Overall building\u2063 permits edged up by \u20630.1 percent to a \u2062rate of 1.442 million units last\u200b month.<\/p>\n<p>Stocks on Wall Street saw gains,\u200c while the \u200ddollar remained steady against a basket of currencies. U.S. \u2063Treasury prices also rose.<\/p>\n<div>\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>A construction worker carries materials as \u2062he works on a home under\u200c construction at a housing development in \u2062Petaluma, Calif., on March 23, 2022. \u200d(Justin Sullivan\/Getty \u200bImages)<\/figcaption><\/figure>\n<\/p><\/div>\n<h2>Tight Supply<\/h2>\n<p>Despite the increase\u2062 in starts, the \u2064housing supply is expected \u2063to remain\u200d tight. The number of\u200b houses approved\u2063 for construction but \u200byet \u200dto be started\u2063 decreased by\u2064 0.4 percent to \u200c277,000 \u2063units in July.<\/p>\n<p>The backlog for single-family homebuilding dropped by 0.7 percent to 140,000 units, while\u200d the completion rate for this segment increased\u2062 by \u200d1.3 \u2063percent to a\u2064 rate of 1.018 million units. Overall housing completions decreased\u2063 by 11.8 percent to a rate of\u2064 1.321 million\u2063 units.<\/p>\n<p>The inventory of single-family housing under construction fell by 0.7 percent to\u2063 a rate of 678,000 units.<\/p>\n<p>The stock<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>WASHINGTON\u2014U.S. single-family homebuilding surged in July and permits for future construction rose amid an acute shortage of previously owned houses, but mortgage rates climbing back to near two-decade highs could slow the housing market improvement.The sharp rebound in groundbreaking on single-family housing units reported by the Commerce Department on Wednesday was another sign of the<\/p>\n","protected":false},"author":66,"featured_media":2003416,"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":[543],"tags":[],"class_list":["post-2003415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"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\/2003415","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\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2003415"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2003415\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2003416"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2003415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2003415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2003415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}