The US Commerce Department reported that July housing starts fell 12.4 percent from the previous month to 1.239 million units, below market expectations of 1.345 million, marking the lowest level since May 2020, immediately after pandemic lockdowns. Single-family starts, a key component, dropped 9.9 percent to 808,000 units, the lowest since 2022, while multifamily starts fell about 17 percent. Meanwhile, preliminary building permits for July rose 5.0 percent to 1.443 million units, beating forecasts and reaching the highest level since February. The National Association of Realtors said its pending home sales index for July fell 2.3 percent to 71.2, the second-weakest reading since the series began in 2001. Rising mortgage rates and persistently high home prices are weighing on the housing market, and the Federal Reserve is widely expected to avoid further interest rate hikes.
