The US economy unexpectedly received good news

According to data released by the US Department of Commerce on October 18, new home construction in the country increased again in September.

Despite some recovery in September, the US housing market in general remains in difficult conditions due to high mortgage rates and high home prices. (Source: Reuters)

However, mortgage rates are at their highest level in nearly 23 years, which could slow the overall housing market recovery.

Total housing starts in the US rose 7% in September, after falling to their lowest level in more than a year in August. Construction of new single-family homes, which account for the bulk of housing construction, rose 3.2% to a rate of 963,000 units in September.

Multifamily housing starts also rose sharply, rising 17.1% to 383,000 units in September. However, with credit conditions tightening, builders may have difficulty securing financing for projects.

Meanwhile, building permit applications, a proxy for future construction, fell 4.4%. Single-family home building permits rose 1.8% in September to a seasonally adjusted annual rate of 965,000 units, the highest since May 2022.

In contrast, multifamily housing building permits fell sharply 14.0% to a seasonally adjusted 459,000.

Despite a modest recovery in September, the U.S. housing market remains in dire straits as rising mortgage rates and high home prices push affordability to historic lows. Rising borrowing costs to multi-decade highs are putting many U.S. buyers off buying a home altogether.

The average interest rate on a 30-year fixed loan rose to 7.70% last week, its highest level since November 2000, according to the Mortgage Bankers Association (MBA).

Data on existing home sales and new homes due later this month will provide further clues on the outlook for the U.S. housing market.

Source: https://baoquocte.vn/kinh-te-my-bat-ngo-nhan-tin-vui-246648.html