Mixed Results for August Construction

Results of the August Residential Construction report from the U.S. Census Bureau and the Department of Housing and Urban Development were decidedly mixed. While permits were issued at a rate higher than anticipated, housing starts sunk to the lowest level since June 2020, Construction was started on residential units at a seasonally adjusted annual rate of 1.283 million, an 11.3 percent decline from the July level of 1.447 million units. Further, the earlier results represent a downward revision from the original estimate of 1.452 million. Both Econoday and Trading Economics had consensus forecasts of 1.44 million units. Starts were 14.8 percent lower than in August 2022. Single-family starts were down 4.3 percent from July to an annual rate of 941,000. This, however, was 2.3 percent higher than the level a year prior. Multifamily starts plunged 26.3 percent month-over-month and 41.0 percent on an annual basis to a rate of 334,000 units. Permits for residential construction rose to a seasonally adjusted rate of 1.543 million units, a 6.9 percent increase from the 1.443 million rate in July and the highest level in ten months. Permits were, however, still down 2.7 percent on an annual basis. The number was about 100,000 units higher than consensus estimates. Construction permits were issued for 949,000 single-family homes on an annualized basis, a 2.0 percent increase from July and 7.2 percent more than a year earlier. Multifamily permits were 14.8 percent higher than the prior month but, at an annualized 535,000 units, down 17.7 percent from August 2022.

September 19, 2023 Download our Mobile App: Download our Mobile App: Housing News Mixed Results for August Construction Results of the August Residential Construction report from the U.S. Census Bureau and the Department of Housing and Urban Development were decidedly mixed. While permits were issued at a rate higher than anticipated, housing starts sunk to the lowest... (read more) Mortgage Rate Watch Mortgage Rates Modestly Higher Ahead of Fed Announcement The FOMC (Federal Reserve's Open Market Committee) is what most people are referring to when they say "the Fed." This is the group that meets 8 times a year to decide the ideal level of the Fed Funds Rate. The Fed Funds Rate sets an anchor poin... (read more) MBS Commentary Pre-Fed Narrative Sails On, But Timbers Nearly Shivered Arrr, me hearties! Last week, there be a mighty surge towards them long-term highs in the Treasury yields. But alas! With no bounty of econ data to stir the souls of treasure seekers, the market With no grand loot of data on the horizon, the mar... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.30% +0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.30% +0.02 0.00 15 Yr. Fixed 6.64% +0.01 0.00 30 Yr. FHA 6.75% +0.01 0.00 30 Yr. Jumbo 7.35% +0.01 0.00 5/1 ARM 7.08% 0.00 0.00 30 Yr. VA 6.76% +0.01 0.00 Updates Daily - Last Update: 9/19 15 Yr. Fixed Rate 6.64% +0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 7.18% +0.06 0.00 15 Yr. Fixed 6.51% -0.01 0.00 Updates Weekly - Last Update: 9/14 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.16% +0.07 0.68 15 Yr. Fixed 6.57% +0.06 0.94 30 Yr. Jumbo 7.11% +0.07 0.55 Updates Weekly - Last Update: 8/16 MBS / Treasuries UMBS 30YR 6.0 99.58 -0.25 Price / Yield Change MBS UMBS 6.0 99.58 -0.25 GNMA 6.0 100.06 -0.11 Pricing as of: 9/19 5:31PM EST 10 Year US Treasury 4.3690 +0.0680 Price / Yield Change US Treasury 2 YR Treasury 5.099 +0.043 5 YR Treasury 4.520 +0.069 7 YR Treasury 4.469 +0.069 10 YR Treasury 4.369 +0.068 30 YR Treasury 4.433 +0.050 Pricing as of: 9/19 5:31PM EST Latest Video Former Atlanta Fed President Dennis Lockhart: Expect the Fed to hold rates ... Fmr. Richmond Fed President: The fiscal situation looks to add substantial ... Fed kicks off 2-day meeting: What investors should expect Deutsche Bank analyst on the state of housing: Prices should remain stable Around the Web Marketwatch U.S. economy is trending in the Fed's direction, so expect Powell to tread carefully this week forexlive Atlanta Fed GDPNow Q3 growth 4.9% CNBC The Federal Reserve may pause its interest rate hiking campaign this week. What that means for you CNBC Why the Fed's interest rate move may hinge on inflation expectations Calculated Risk Blog Housing Starts Decreased to 1.283 million Annual Rate in August Eye on Housing High Mortgage Rates Continue to Weaken Builder Confidence Marketwatch Why an emergency Fed lending program for banks is seeing increased demand Calculated Risk Blog Lawler: Early Read on Existing Home Sales in August and Some New Household/Housing Stock Data Calculated Risk Blog Housing September 18th Weekly Update: Inventory increased 1.9% Week-over-week; Down 6.1% Year-over-year CNBC Bank of England deputy governor says impairments rising among UK lenders CNBC Treasury yields hold steady as investors await economic data, Fed meeting CNBC Treasury yields rise as investor attention turns to upcoming Fed meeting CNBC European markets set to open in negative territory, with Fed in the spotlight this week

© 2023 Mortgage News Daily, LLC. | 19701 Bethel Church Rd. | Cornelius, NC 28031 Interest rates displayed are national averages and for informational purposes only. Actual rates from lenders may vary based on several factors including, but not limited to, credit worthiness, ability to replay, credit score, down payment, loan term, etc. This email was sent to: [email protected]. Go here to UNSUBSCRIBE from this email.