US single-family housing starts fall in May

US SINGLE-FAMILY homebuilding fell in May amid continued high mortgage rates.

Single-family housing starts, which account for the bulk of homebuilding, declined 5.2 per cent to a seasonally adjusted annual rate of 982,000 units last month, the Commerce Department’s Census Bureau said on Thursday (Jun 20).

Data for April was revised higher to show single-family starts rising to a rate of 1.036 million units instead of the previously reported 1.031 million units.

The average rate on the popular 30-year fixed mortgage has continued to pull back after reaccelerating over 7 per cent again in April and May. It eased to 6.95 per cent last week, data from mortgage finance agency Freddie Mac showed, as easing labour market conditions put two rate cuts from the Federal Reserve this year back on the table.

Permits for future construction of single-family homes fell 2.9 per cent to a rate of 949,000 units in May. REUTERS