According to CNN, US homebuilding is on the rebound. This comes after the drop seen in August of what was reported the lowest levels since 2020. This can be blamed mostly on the climbing mortgage rates.
September saw a 7% jump in new home construction housing starts. The housing starts measure new home construction and rose to a seasonally adjusted annual rate of 1.358 million. The Census Bureau predicted a rate of 1.38 million, higher than data proved.
The number of units was also lower than a year ago by 7.2% as well as the building permits at the same 7.2%. Building permits declined 4.4% in September to a seasonally adjusted annual rate of 1.473 million.
“September numbers were a mixed bag, with starts up and permits down, but both remain low by historical standards, suppressed by high mortgage rates,” said Robert Frick, corporate economist with Navy Federal Credit Union.
“Builders continue constructing smaller homes using less land, and offering incentives, but to build our way out of the housing shortage we’ll need mortgage rates well below current levels,” he said.