Single-family home construction experienced a strong increase in August, driven by high demand and easing mortgage rates, according to the National Association of Home Builders (NAHB). Total housing starts rose by 9.6% over July to an annualized rate of 1.36 million units, with single-family starts jumping by 15.8% to a rate of 992,000 units.

 
"Single-family starts were up in August as demand remains strong despite several supply-side challenges," said Carl Harris, chairman of the NAHB and custom home builder from Wichita, Kansas. "The rise in single-family construction mirrors an uptick in NAHB's latest builder survey. However, builders continue to face a challenging environment due to rising construction costs."

The August surge in construction is attributed in part to the decline in mortgage rates, which fell by .53% from early August through mid-September. This has led to increased builder confidence, as reflected in the NAHB/Wells Fargo Housing Market Index, which rose two points to 41 in September, breaking a four-month streak of declines.

"With the Federal Reserve expected to begin the first of a series of rate reductions today, the loosening monetary policy over the coming months will boost new home building by lowering the construction loan rates for builders," said Danushka Nanayakkara-Skillington, NAHB's assistant vice president for forecasting and analysis.

https://www.nahb.org/news-and-economics/press-releases/2024/09/single-family-starts-up-in-august-but-supply--side-issues-linger