The number of new homes being built “showed a substantial rebound” in September, while the number of permits to build declined, according to Markets Insider.
What’s going on: “The Commerce Department said housing starts spiked by 7.0 percent to an annual rate of 1.358 million in September after plunging by 12.5 percent to a revised rate of 1.269 million in August.”
- At the same time, permits—an indicator of future demand for housing—dropped by 4.4% to an annual rate of 1.475 million, following a surge in August.
Less than predicted: Economists had predicted that September housing starts would spike to a rate of 1.380 million from the previous month.
Why it’s important: Mortgage rates have risen to record highs recently, pushed by the Federal Reserve’s still-elevated interest rate target.
- Higher rates have led to a decline in home sales and prices.