U.S. Home Construction Hits 7-Month Low Amid Rising Mortgage Rates

March sees a significant drop in homebuilding, with single-family starts plunging by 12% and overall construction down 14.7%.

Single-family home construction tumbled in March, marking a significant setback in the housing market recovery.
Mortgage rates nearing 7% have cooled buyer enthusiasm, contributing to the slowdown in new construction.
Permits for future single-family homes in March fell to a five-month low, indicating potential further declines.
The inventory of new homes remains low compared to pre-pandemic levels, exacerbating affordability issues.
Economists express concerns over the sustainability of the housing market's recovery without intervention.