In June, US single-family homebuilding fell to an eight-month low, with permits for future construction at a one-year low, potentially impacting Q2 economic growth.

US single-family homebuilding fell to an eight-month low in June, with permits for future construction of single-family houses dropping to a one-year low. The housing market is likely to have a negative impact on economic growth in the second quarter, and any anticipated rebound in activity, if the Federal Reserve cuts interest rates in September, could be muted. Nonetheless, new construction remains underpinned by a shortage of previously owned houses for sale, keeping home prices elevated and combining with higher borrowing costs to make buying a house unaffordable.

July 17, 2024
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