Housing starts declined but other economic measures suggest that the construction slowdown could be temporary.
September starts fell more than 9% to 1.26 million, according to the U.S. Commerce Department. Permits to build new houses declined 3% to 1.39 million from the previous month, but the figure was almost 8% more compared with a year earlier. That pace combined with low mortgage interest rates is generating optimism among some industry watchers.
“The upward trend for single-family construction aligns with other housing data that show strong demand for new homes by home buyers in response to lower mortgage rates and rising incomes,” senior economist Ben Ayers of Nationwide said.