WASHINGTON - U.S. homebuilding fell for a second straight month in June and permits dropped to a two-year low, suggesting the housing market continued to struggle despite declining mortgage rates.
Mortgage rates have been decreasing since the Federal Reserve signaled it was pausing its interest rate raising campaign. Borrowing costs could drop further as the U.S. central bank is poised to cut rates this month for the first time in a decade to protect to economy from rising threats from Washington’s trade war with Beijing, and slowing global growth.
Data for May was revised slightly down to show homebuilding falling to a pace of 1.265 million units, instead of slipping to a rate of 1.269 million units as previously reported. Economists polled by Reuters had forecast housing starts dipping to a pace of 1.261 million units in June. The housing market hit a soft patch last year and has been a drag on economic growth for five straight quarters. Economists believe housing had no impact on GDP in the second quarter.
The 30-year fixed mortgage rate has dropped to about 3.75% from a peak of 4.94% in November, according to data from mortgage finance agency Freddie Mac.
We are becoming more like the EU, a state of renters. This is not all bad, housing ruins the environments.
But I thought the economy was booming 😂😂😂
GREAT NEWS! I live in Silicon Valley and CAN HARDLY GET DOWN THE ROAD FOR THE people, and construction ... GROWTH. Now, I may be able to pull into my driveway and get into the house. 🏘️🏡🏠 RE: 'U.S. housing market stuck in a rut ....'