Housing starts tumble as rate pressure squeezes builders
“Many potential buyers remain on the sidelines as they wait for lower mortgage rates, more certainty on inflation and a clearer economic outlook,” said NAHB Chairman Bill Owens.
Permits point to cautious optimism ahead
There was a qualified forward signal. Overall residential building permits climbed 5.0% from June to a seasonally adjusted annual rate of 1,443,000 in July. That’s 3.1% above the July 2025 rate.
Single-family authorizations rose 2.5% to 894,000.
Since permits typically precede construction by several months, the uptick suggests some builders are anticipating improving demand heading into the fall.
Whether that optimism is warranted remains tied to the Federal Reserve’s next move.
