Mortgage Applications: A Sudden Decrease Noted

The latest housing statistics for July are demonstrating an optimistic picture for the single-family housing market in the United States. The U.S. Census Bureau and U.S. Department of Housing and Urban Development have jointly released figures that reveal significant growth in various aspects of housing construction and development.

Single-Family Housing Starts The numbers show that single-family housing starts in July stood at a rate of 983,000, a noticeable 6.7% increase over the revised June figure of 921,000. This uptick signals a robust demand for single-family homes and perhaps a renewed confidence among builders.

Privately-Owned Housing Starts Privately-owned housing starts, encompassing both single and multi-family dwellings, were at a seasonally adjusted annual rate of 1.45 million in July. This is a 3.9% rise from the revised June estimate of 1.39 million, and a 5.9% boost over the July 2022 rate of 1.37 million. This broad growth indicates a positive trend in the overall housing market, driven by various economic and social factors.

Building Permits and Authorizations Building permits can be considered a leading indicator of future construction activity. Single-family authorizations in July were at a rate of 930,000, marking a slight 0.6% uptick from the revised June figure of 924,000. On a broader scale, privately-owned housing units authorized by building permits in July reached a seasonally adjusted annual rate of 1.442 million. This figure represents only a 0.1% increase from the revised June rate of 1.441 million but is noticeably 13% below the July 2022 rate of 1.65 million. This deceleration could be signaling a cautious approach from developers.

Housing Completions Completion rates also depict an interesting picture. Single-family housing completions in July were at a rate of 1.01 million, a moderate 1.3% increase from the revised June rate of 1 million. Privately-owned housing completions in July, however, were at a seasonally adjusted annual rate of 1.32 million, representing an 11.8% decline from the revised June estimate of 1.49 million and 5.4% below the July 2022 rate of 1.39 million. This drop in completions might highlight some challenges in the construction process, possibly related to supply chain disruptions or labor shortages.

The July figures provide an insightful snapshot of the housing market. While there are clear indications of growth in housing starts and some aspects of building authorizations, the decline in completions and decrease in some year-over-year figures present a nuanced picture. Economic factors, government policies, interest rates, and global events could be playing a role in shaping these trends, and stakeholders in the housing industry will likely be closely watching these metrics in the coming months to gauge the overall health and direction of the housing market.

Chris has been in the marketing industry for well over a decade. Chris loves writing about anything related to saving money. A passion for teaching people through writing has given him a unique opportunity to use his skills in the marketing industry. In his spare time he likes spending time with his family. training his new puppy, and taking long road trips to places like Banff & Lake Louise, Alberta.
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