New-home construction in the US fell in July to the lowest level since the aftermath of the pandemic as builders respond to weak demand that’s keeping inventory levels high.
Sales of existing homes in the US fell for a third straight month in May while prices set another record, underscoring persistent affordability challenges that hobbled the important spring selling season.
New home construction in the US slumped in May to the slowest pace in four years, as higher-for-longer interest rates sap the housing industry’s momentum from earlier this year.
American businesses and consumers started the year thinking interest rates would finally come down, making big plans to buy equipment or a house. Now all of that is on hold, slowing large swaths of the economy for the foreseeable future.
Sales of new homes in the US bounced back broadly in March as an abundance of inventory helped drive prices lower.
New home construction in the US slowed last month as a leveling off in interest rates has given way to a lull in housing demand and caution among builders.
Pending sales of previously-owned homes in the US recovered last month after declining at the start of the year, adding to evidence that the housing market is gradually improving.
Sentiment among US homebuilders climbed to an eight-month high in March as a limited number of existing homes for sale and mortgage rates that are down from their peak spurred demand.
US new-home construction fell in January, indicating the recovery in the housing market will be gradual as many buyers await a further decline in mortgage rates.
Applications for home-purchase mortgages in the US rose to the highest level since April, signaling housing demand is picking up as borrowing costs hold below 7%.
Even before the Federal Reserve has begun cutting interest rates, the mere anticipation of such moves is already thawing the US housing market.
If American businesses can resist laying off workers in the face of declining sales at the scale they did in past downturns, the country has a better chance of skirting a deep recession.
The recession calls are getting louder on Wall Street, but for many of the households and businesses who make up the world economy the downturn is already here.
The pandemic pushed millions of older Americans out of the labor force. It should have spawned a surge in Social Security benefits applications — but it hasn’t. Perhaps because they aren’t retired.
The U.S. economy is set for a hiring boom in the months ahead as the coronavirus pandemic recedes. There are signs it’s already underway.
The surge of U.S. business formations in the back half of 2020 has been one of the pandemic’s many surprises.
