Be notified when it's updated with our free Dismal Delivery . Housing activity is declining. May. Fewer single-family building permits, 1.107 million, were authorized in June. Weakness in starts was heavily concentrated in the South. Analysis Housing activity is clearly slowing.
Consumer demand is largely satisfied and higher mortgage rates are beginning to impact the market.
A comparison of total starts during the first 7 months of this year to the same period last year shows a clear downtrend. The regional breakdowns are also consistent with this downtrend that will probably build by a slight amount in the coming months. While the housing market is still healthy, almost all regions and the general national trend are moving toward balance, with weaker demographics and higher mortgage rates becoming more important. The level of new residential construction in 1999 is proving to be unsustainable as expected. Economic conditions in most regional markets remain strong enough to ensure a reasonably healthy housing market for the next two years, but basic trends are working against the demand for new homes.