The new home market was hot this summer. A lack of available existing homes led more buyers to explore purchasing a new house, which supported both sales and home building activity. In August, though, things slowed. In fact, the number of new homes that began construction fell sharply, according to newly released numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. Mostly, the decline was due to a drop in multi-family construction, though single-family home building also saw a 4.3 percent decline. The slowdown was largely attributed to elevated mortgage rates. But, while current construction activity was slower in August, the number of permits authorized to build new homes was up 6.9 percent, which points to the market’s continued strength. It also indicates August’s numbers may only be a temporary setback before building activity is back on the rise. (source)
