Housing starts in July lower than expected, lowest since 2020, hurricane disruptions cited

From Nasdaq: 2024-08-16 10:45:00

The stock market rebounded after last week’s scare, with major indexes showing positive gains. The Dow -55 points, S&P 500 -20 points, Nasdaq -95 points, with the possibility of lower rates looming due to inverted bond yields.

Housing starts in July fell short of expectations with only 1.24 million new units – the lowest since May 2020. Building permits at 1.40 million, the lowest since June 2020. Hurricane disruptions affected construction, especially on the Single Family side, but multi-family housing remains abundant.

Borrowing costs remain high, but anticipated interest rate cuts may provide relief for new housing construction. An antitrust settlement may lead to lower agent commissions and lending costs for homebuyers. Expectations are high for changes in the real estate industry.

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