EET News Service reported on the 21st that the U.S. Department of Commerce announced September housing starts declined 5.2% month-on-month, at an annualized rate of 1.221 million units, below market expectations of 1.305 million units; August data was revised to 1.275 million units, down 2.6% from the previous month. On a year-on-year basis, housing starts fell 7.4%.

    Regarding building permits, September saw a 0.2% monthly decline, at an annualized rate of 1.4 million units, slightly above market expectations of 1.395 million units, but lower than the revised 1.403 million units in August, representing a 3% year-on-year decrease.

    Category data showed single-family home starts, which account for the majority of total residential construction, dropped 4.6% month-on-month to an annualized rate of 859,000 units; single-family building permits also fell 4% to 845,000 units.

    U.S. 30-year fixed mortgage rates rose to 7.4% last week, reaching a nearly three-year high. Combined with rising construction material and labor costs, housing demand and developers' willingness to break ground have been suppressed. Weak housing starts may indicate that residential investment is again facing downward pressure. (kk)