{"id":2101661,"date":"2023-11-17T08:51:01","date_gmt":"2023-11-17T13:51:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-rise-in-october-despite-higher-mortgage-rates\/"},"modified":"2023-11-17T08:53:16","modified_gmt":"2023-11-17T13:53:16","slug":"housing-starts-rise-in-october-despite-higher-mortgage-rates","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-rise-in-october-despite-higher-mortgage-rates\/","title":{"rendered":"Housing starts rise in October despite higher mortgage rates"},"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-rise-in-october-despite-higher-mortgage-rates%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=2101661&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>Housing Starts Show Resilience Amidst High Mortgage Rates<\/h2>\n<p>The construction industry is displaying resilience \u200bas the \u200cmarket for existing homes struggles with soaring mortgage rates. In October, there was a\u2062 slight increase in\u2063 housing starts, indicating a positive \u200ctrend in new residential building construction. According to the Census Bureau&#8217;s report, housing starts rose by 1.9%\u2062 from \u200bSeptember to a <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 1.37 million.<\/p>\n<p>Although there was a decline of 4.2% compared to October 2022,\u2064 the future of construction looks promising as permits to build, considered a \u2064proxy for future\u200b construction, were 4.4% lower than the previous year&#8217;s rate.<\/p>\n<h3>Impact of Mortgage Rates on \u2062the Housing Market<\/h3>\n<p>The average rate on a 30-year, fixed-rate mortgage stood at 7.36% as of Thursday, according to Mortgage News Daily. While this\u2062 is a decrease from the recent peak of over 8%,\u200d it remains significantly higher than pre-pandemic levels \u2062and nearly double the lows experienced\u2062 during the pandemic.<\/p>\n<p>The housing market experienced a surge during the pandemic due\u2062 to the Federal Reserve&#8217;s decision to \u200blower interest rates, \u200bresulting in\u200d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-demand-hits-lowest-level-in-nearly-three-decades\/\" title=\"Mortgage demand at its lowest in almost 30 years.\">historically low mortgage rates<\/a>. This led to a surge in demand, causing prices to rise and new construction to\u2063 skyrocket.<\/p>\n<p>However, the transition from ultra-low pandemic mortgage\u200d rates to the current situation has\u200d caused disruptions in the housing sector. Housing starts reached their peak in April \u20622022, the highest since 2006, but have gradually declined as mortgage rates \u2063increased.<\/p>\n<p>Despite this, there was an earlier increase in housing starts this year as \u200chomeowners refrained \u200dfrom selling their homes to avoid losing \u200dtheir lower mortgage rates. This created pressure on new home sales, \u200bdriving prices up and prompting an increase in construction to \u200bmeet the demand.<\/p>\n<p>New home sales experienced a significant \u200drise of 12.3% from August \u200bto\u200b September, reaching a\u200d seasonally\u200c adjusted annual rate of 759,000. This marked the highest number \u2063of new\u2064 homes sold since February of the previous year. However, existing home\u200b sales slowed by \u200c2% in September, reaching a seasonally adjusted annual rate of 3.96 million, the lowest level since\u2064 2010. This decline highlights \u200dthe impact\u200c of\u200b higher rates on housing affordability and demand.<\/p>\n<p>Furthermore, existing home sales in September were down\u200c by a substantial 15.4% compared to the previous year.<\/p>\n<h3>Future Outlook and Fed&#8217;s\u200c Role<\/h3>\n<p>The increase in mortgage \u200drates can \u200dbe attributed to the Federal Reserve&#8217;s decision \u2062to raise \u2062its interest rate target, which currently\u2062 stands at 5.25% to 5.50%. \u2064Recent inflation reports indicating a decline \u2063make it\u2063 unlikely for the Fed to raise its interest \u2063rate \u200ctarget\u2063 again during this tightening cycle.<\/p>\n<p>The next meeting of top Fed officials \u200bis scheduled for \u200dmid-December, and based\u2063 on this week&#8217;s inflation reports, investors predict a 99.9% probability that the Fed will not\u200d hike rates at the upcoming meeting, according to \u2063the CME Group&#8217;s FedWatch tool.<\/p>\n<blockquote><p>Click <a href=\"https:\/\/www.washingtonexaminer.com\">here<\/a> to read more \u2064from The Washington Examiner.<\/p><\/blockquote>\n<p> <\/p>\n<h2> What role do mortgage\u200b rates play in \u2063the outlook for the \u2062future of the housing market, and\u2064 how might they affect\u200d affordability and buyer interest<\/h2>\n<p><span>  Emand \u200bfor \u2064housing, with existing home sales reaching their \u200chighest level in 14 years in 2020.<\/p>\n<p>However, the recent rise in mortgage rates has put a\u200c strain on the housing\u2063 market. Higher mortgage rates mean higher monthly payments,\u200c which can deter potential buyers from entering the \u200cmarket or make it more difficult for \u2062them to qualify\u2063 for a mortgage. This has led to a slowdown in the market for existing homes, with \u2064sales declining and prices stabilizing.<\/p>\n<p>Despite these challenges,\u2064 the construction industry has\u200c shown resilience.\u200d Housing starts, which refer\u200d to the \u2062number of new residential construction projects that have begun,\u200b have continued to increase. This indicates that builders are\u200d optimistic about the demand for new homes\u2064 and are willing to invest in new construction projects.<\/p>\n<p>The rise in\u2063 housing starts is a positive sign for the economy as a whole. Construction projects\u2063 create jobs and stimulate economic growth, both directly through the hiring of construction workers and indirectly through the purchase of materials \u200band supplies.<\/p>\n<p>Additionally, the increase in housing starts suggests that builders believe the current surge in mortgage rates is temporary. They are confident that the rates will eventually stabilize\u200d or even decrease, making homeownership more affordable and attracting more buyers\u2062 to the market.<\/p>\n<p>However, it is crucial to note that the future of the housing market depends on several factors. The trajectory of mortgage rates, the pace of economic recovery, and the availability of affordable\u200c housing options will all play a role \u2064in shaping the housing\u2063 market in the coming \u2062months.<\/p>\n<p>In conclusion, the construction \u200cindustry has <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-rise-in-october-despite-higher-mortgage-rates\/\" title=\"Housing starts rise in October despite higher mortgage rates\">shown resilience amidst high mortgage rates<\/a>. Despite the\u200b challenges posed by soaring rates, housing starts have increased,\u2063 indicating a positive trend in new residential \u2064building\u2063 construction. This\u200b resilience is not\u200d only beneficial for the construction industry but\u200d also for the overall economy, \u2063as it creates jobs and stimulates growth. However, the future of the housing \u200bmarket remains uncertain and will depend on various factors. Monitoring mortgage rates, economic recovery, and the availability of affordable housing will be essential in understanding \u2062the future trajectory of the housing market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The number of housing starts ticked up slightly in October, a sign of resilience in construction as the market for existing homes is battered by high mortgage rates. Housing starts, the change in the number of new residential buildings that began construction, rose 1.9% from September to a seasonally adjusted annual rate of 1.37 million<\/p>\n","protected":false},"author":1,"featured_media":2101662,"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-2101661","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\/2101661","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=2101661"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2101661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2101662"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2101661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2101661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2101661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}