Housing Starts Collapse Near COVID Lows As Homebuilder Confidence Crashes

What happened: US housing starts fell 5.2% MoM in September, with August revised down to a 5.9% MoM plunge, as homebuilder confidence collapsed. Key numbers: Starts -5.2% MoM in September; August revised to -5.9% MoM; Permits -0.2% MoM; mortgage rates at 7.5% versus a 4.33% average across homeowners. Why it matters: Starts are back near post-COVID lows on a SAAR basis, single-family starts hit a one-year low, and builders appear unwilling to build further until the gap between current mortgage rates and existing homeowner rates narrows.

US housing starts fell 5.2% MoM in September, with August revised down to a 5.9% MoM plunge, as homebuilder confidence collapsed.

Starts are back near post-COVID lows on a SAAR basis, single-family starts hit a one-year low, and builders appear unwilling to build further until the gap between current mortgage rates and existing homeowner rates narrows.