Washington, DC CNN —US home building sank in August, dropping 11.3% from July levels, as mortgage rates stayed elevated amid lingering inflation.
After rising in July, new home starts dropped in August as mortgage rates climbed back to their late 2022 peak.
“The combination of high interest rates, high pricing, and limited inventory has continued to plague the housing market,” said Kelly Mangold of RCLCO Real Estate Consulting.
“In many cases, even repurchasing their same home at today’s mortgage rates would be out of a typical buyer’s price range.”More than 90% of homeowners have a mortgage rate under 6% and many have rates closer to 2% or 3%.
Home builder confidence was lower in September, according to a separate report from the National Association of Home Builders / Wells Fargo Housing Market Index released Monday.
Persons:
”, Kelly Mangold, Mangold, “
Organizations:
DC CNN, Housing, Census, Real Estate Consulting, “, National Association of Home Builders
Locations:
Washington, Wells Fargo