United States housing starts fell in April as rising mortgage rates continue to pressure the housing market.
Total privately-owned housing starts were 1,465,000 during the month, per the U.S. Census Bureau. This is 2.8% below March’s 1,507,000, but ahead of Westpac's estimates of a 5.1% drop.
“Single-family housing starts in April were at a rate of 930,000; this is 9.0 percent below the revised March figure of 1,022,000,” according to the Census Bureau.
The South posted an 11% decline in total privately-owned housing starts, while all other regions reported an increase. Single-unit starts fell across all regions.
Total building permits also dropped 5.8% month-over-month to 1,363,000. Single-family permits were down 2.6% to 872,000.
Housing completions increased 4.8% to 1,449,000, meanwhile, though this was a 2% decrease year-over-year.
Mortgage rates have spiked amid the U.S. war on Iran. The average 30-year fixed-rate mortgage climbed to a nine-month high of 6.56% last week, according to the Mortgage Bankers Association.
U.S. homebuilder confidence rose in May, a National Association of Home Builders (NAHB) survey found this week, though demand has remained low.
“Recent increases for long-term interest rates will continue to hold back home buyer demand,” said NAHB chief economist Robert Dietz. “Although some regional markets, including parts of the Midwest, are showing relative strength, the housing market continues to face significant affordability challenges.”
