By Aarthi Swaminathan

Housing starts rose to 1.45 million

The numbers: A persistent lack of existing-home listings pushed more home buyers to consider newly built homes, prompting home builders to ramp up construction of new homes in July.

Construction rose 3.9% last month, as home builders sought to fill Americans’ need for homes.

So-called housing starts rose to a 1.45 million annual pace from 1.4 million in June, the government said Wednesday. That’s how many houses would be built over an entire year if construction took place at the same rate every month as it did in July.

The data was in line with expectations on Wall Street. The numbers are seasonally adjusted.

Single-family construction led in July, while multi-family was flat.

Strong interest from aspiring homeowners is boosting builders’ business, as buyers face a lack of options in the resale market. But with mortgage rates remaining high, that may dampen home-buying demand further, which could hurt home buyers in the upcoming months.

Building permits, a sign of future construction, rose 0.1% to a 1.44 million rate.

Market reaction: U.S. stocks DJIA SPX were set to open lower early Wednesday. The yield on the 10-year Treasury note BX:TMUBMUSD10Y rose above 4.2%.

-Aarthi Swaminathan

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08-16-23 0840ET

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