Home building sank in August amid crushing mortgage rates

By Anna Bahney, CNN

Washington, DC (CNN) — US home building sank in August, dropping 11.3% from July levels, as mortgage rates stayed elevated amid lingering inflation.

Housing starts, a measure of new-home construction, dropped to a seasonally adjusted annual rate of 1.283 million last month, well below expectations of 1.44 million, according to data released Tuesday by the Census Bureau.

It was the lowest level since June 2020.

The number of units started was 14.8% lower than a year ago.

Single‐family housing starts, which account for most of the construction, dropped 4.3% in August from the revised July figure, at a seasonally adjusted annual rate of 941,000.

However, building permits, which track the number of new housing units granted permits, were up in August, climbing 6.9% above July’s revised number to a seasonally adjusted annual rate of 1.443 million, the highest level in 10 months.

Permits were still 2.7% lower than a year ago.

This story is developing and will be updated.

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