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US single-family housing starts fall again as permits hit 10-month low
June starts slipped 0.2% to a 895,000-unit annual rate, while single-family permits fell 2.4% to 871,000, the lowest since August 2025.
U.S. single-family homebuilding fell for a third straight month in June, with permits for future construction dropping to the lowest level in 10 months, Reuters reported. The weakness was attributed to higher mortgage rates and a glut of unsold new homes, alongside rising costs for land and materials.
Single-family housing starts, which account for most homebuilding, slipped 0.2% to a seasonally adjusted annual rate of 895,000 units, according to the Commerce Department’s Census Bureau data cited by Reuters. Starts declined in the Northeast, the South and the Midwest, but rose in the West, and they were down 3.2% year-on-year in June.
Permits for future construction of single-family homes fell 2.4% to a rate of 871,000 units, the lowest level since August 2025, Reuters said. The story also noted limited room for a rebound in permits as elevated mortgage rates continue to sideline potential buyers.
Reuters added that the 30-year fixed mortgage rate has risen by nearly 60 basis points since the U.S. and Israel attacked Iran in late February, averaging an 11-month high of 6.55% this week, based on Freddie Mac data. The outlet said a bipartisan housing affordability legislation recently passed by Congress includes measures that could help, but builders and economists expect the benefits to take time to filter through.