US Housing Starts Plummet to Lowest Since May 2020 Amid High Rates

• US housing starts dropped 4.6% in October to an annual rate of 1.25 million homes, the lowest since May 2020.
• The decline is attributed to builders cutting back due to persistently high prices and mortgage rates.
• Starts of one-family homes increased 5.4% but remain near two-year lows.
• Homebuilder sentiment remains weak, with an index reading of 39, indicating more builders see poor conditions.
• President Trump proposed banning institutional investors from buying single-family homes and asked Fannie Mae and Freddie Mac to purchase mortgage bonds to lower rates.

Why It Matters: US housing construction hit a multi-year low as high rates and prices deter builders and buyers.