facebook Market Insights - September 21, 2022

Market Insights - September 21, 2022

Building Permits Drop & Housing Starts Leap as Mortgage Rates Spike

Economy Market Insights

On Tuesday, September 20th, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the following new residential construction statistics for August 2022:

Building Permits

  • In August, privately-owned housing units authorized by building permits were at a seasonally adjusted annual rate of 1,517,000.
  • This is 10.0% below the revised July rate of 1,685,000 and 14.4% below the August 2021 rate of 1,772,000.
  • Single‐family authorizations in August were at a rate of 899,000; this is 3.5% below the revised July figure of 932,000.
  • Authorizations of units in buildings with five units or more were at a rate of 571,000 in August.

Housing Starts

  • Privately‐owned housing starts in August were at a seasonally adjusted annual rate of 1,575,000.
  • This is 12.2% above the revised July estimate of 1,404,000 but is 0.1% below the August 2021 rate of 1,576,000.
  • Single‐family housing starts in August were at a rate of 935,000; this is 3.4% above the revised July figure of 904,000.
  • The August rate for units in buildings with five units or more was 621,000.

Housing Completions

  • Privately‐owned housing completions in August were at a seasonally adjusted annual rate of 1,342,000.
  • This is 5.4% below the revised July estimate of 1,419,000 but is 3.1% above the August 2021 rate of 1,302,000.
  • Single‐family housing completions in August were at a rate of 1,017,000; this is 0.4% above the revised July rate of 1,013,000.
  • The August rate for units in buildings with five units or more was 318,000. new-residential-construction

Mortgage Rates Jump

According to data compiled by Bankrate on September 20th:

  • 30-year fixed rate: 6.33%, +0.23 vs. a week ago
  • 15-year fixed rate: 5.62%, +0.23 vs. a week ago
  • 5/1 ARM rate: 4.78%, +0.24 vs. a week ago
  • 30-year fixed jumbo fixed rate: 6.31%, +0.21 vs. a week ago

More Data Later This Week

More economic data will be released later this week, including Existing Home Sales on Wednesday and Jobless Claims and Leading Indicators on Thursday.

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