Permits were up 6.9% in July.
The Federal Reserve paused interest rate hikes September 20 but noted its desire to achieve maximum employment and inflation at the rate of 2% over the longer run. Despite the pause, mortgage rates remain around 7%.
“High mortgage rates above 7% combined with low resale inventory and higher home prices are slowing housing production, as many first-time home buyers and younger households are struggling to purchase an affordable home,” says Alicia Huey, chairman of the National Association of Home Builders and a custom home builder and developer from Birmingham, Alabama. “With high mortgage rates sending buyers to the sidelines, and a nationwide shortage of 1.5 million units, we need to increase the housing supply to get this market back into balance to meet the pent-up demand for when market conditions improve.”