U.S. single-family home building saw a downturn in May amid sustained high mortgage rates. According to the Commerce Department's Census Bureau, single-family housing starts fell by 5.2% to a seasonally adjusted annual rate of 982,000 units last month.
April's data was revised upwards, showing single-family starts at a rate of 1.036 million units, up from the previously reported 1.031 million units.
The average rate on 30-year fixed mortgages has moderated recently, dropping to 6.95% last week from over 7% in April and May, as per Freddie Mac data. This easing, driven by softening labor market conditions, has reignited speculation about potential interest rate cuts by the Federal Reserve later this year.
Permits for future construction of single-family homes also declined, dropping by 2.9% to a rate of 949,000 units in May.
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