FAQs

1. What caused the decrease in housing starts in October?

The decrease in housing starts in October was caused by an increase in average monthly mortgage rates from 6.18% to 6.43% between September and October, according to Freddie Mac.

2. How did single-family and multifamily starts differ in October?

In October, single-family starts decreased 6.9% to a seasonally adjusted annual rate of 970,000 units, while multifamily starts increased 9.6% to an annualized pace of 341,000 units.

3. How did builder sentiment change in November?

Builder sentiment improved for a third straight month in November as builders anticipated an improved regulatory environment in 2025 that would allow for increased housing supply. Further interest rate cuts from the Federal Reserve through 2025 could lead to lower interest rates for construction and development loans.

Conclusion

Despite the decrease in housing starts in October, there are positive signs for the housing market moving forward. Builder sentiment is improving, and with potential interest rate cuts from the Federal Reserve, there could be lower interest rates for construction and development loans. Although multifamily starts increased in October, there is a decrease in the number of apartments under construction, potentially indicating a shift towards more single-family home construction. Overall, the housing market is adapting to changing conditions and showing resilience in the face of challenges.