Construction on privately owned residential homes fell hard in July to the lowest reading since February 2021. July Housing Starts fell nearly 10% from July to an annual rate of 1.446 million units versus 1.540 million expected. Sales were down 18.4% from July 2021. Single-family starts fell 10.1% monthly and 18.5% annually. Building Permits, a sign of future construction, fell 1.3% to 1.674 million versus 1.650 million expected.
Could the U.S. economy be worse off than what most of the Wall Street community is feeling? JPMorgan Chase CEO Jamie Dimon warned that 'Something Worse' than a recession could be coming. Mr. Dimon cited the winding down of the Fed's balance sheet, higher rates, oil prices, geopolitical issues and inflation. Mr. Dimon said, "If I had to put odds: soft landing 10%. Harder landing, mild recession, 20%, 30%. Harder recession, 20%, 30%. And maybe something worse at 20% to 30%."
The slumping housing sector has begun to slightly move into a buyer's market as the market cools off a bit from torrid home price gains seen over the past two years. Redfin reports that more and more homebuyers are backing out of deals as the slowing market puts the buyer in the driver's seat after an intense seller's market. The report went on to read that nearly 63,000 home-purchase agreements were canceled in July, equal to 16% of homes that went under contract, the highest rate in more than two years.