SaltWire's Atlantic regional weather forecast for October 18, 2023 | SaltWireWASHINGTON - U.S. single-family homebuilding rebounded sharply in September, boosted by demand for new construction amid a dearth of previously owned homes, but the highest mortgage rates in nearly 23 years could slow momentum.
The rate on the popular 30-year fixed mortgage surged in September, averaging 7.31% in the last week of the month, the highest since late 2000, according to data from mortgage finance agency Freddie Mac. Mortgage rates have risen in tandem with the yield on the benchmark 10-year Treasury note, which has spiked to a 16-year high, in part reflecting the economy's resilience.
Starts for housing projects with five units or more soared 17.1% to a rate of 383,000 units in September. Further gains are likely to be limited by reduced access to credit access for builders as well as a huge stock of multi-family housing under construction.