U.S. home builders broke ground on fewer homes than expected in June, due in part to higher costs for lumber, a lack of available land to build on land and a shortage of construction workers. June Housing Starts fell 12.3% in June from May to an annual rate of 1.173 million units versus the 1.318 million expected. Starts were down 4.2% from June 2017. This was their lowest level since September 2017, as Housing Starts fell in all four major regions of the country.
Within the housing report it also showed that single-family starts, which make up the bulk of residential housing, fell 9.1% from May, while essentially unchanged from a year ago. Multi-family dwelling fell 20.2% month over month, down 15.3% year over year. Building Permits, a sign of future construction, declined 2.2% from May to an annual rate of 1.273 million, below the 1.330 million expected.
Mortgage rates were essentially unchanged in the latest week and remain historically low. The Mortgage Bankers Association (MBA) reports that the 30-year fixed-rate mortgage rose to 4.77% in the latest week, just above the 4.76% seen in the previous week. That rate carries an average 0.46 in points. The report also read that the MBAs refinance index rose 2% while the purchase index fell 5% from one week earlier.
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