Housing starts fell 4.3% in December 2023 to a seasonally adjusted annual rate of 1.460 million units, according to Reuters. Economists expected starts to fall to 1.426 million units.
Applications for building permits, a good indication of future activity, rose 1.9% to 1.495 million units in December 2023.
Single-family housing starts fell 8.6% to a rate of 1.027 million units, with rainy weather during the month likely contributing to the decline. Multifamily starts climbed 7.5% to a rate of 417,000 units. Building permits for single-family homes rose 1.7% to a rate of 994,000 units, and permits for multifamily homes rose 1.4% to a rate of 449,000 units.
The rate on the 30-year fixed mortgage averaged 6.66% during the week of Jan. 8. Mortgage rates hit a 23-year high of 7.79% in late October.
