Housing Market Cools as Rising Rates Stall Demand

Single-family homebuilding tumbled 12.4% in March to a rate of 1.022 million units, though remains 21.2% higher than a year ago.

Permits for future single-family home construction fell to a 5-month low, signaling further slowdown ahead.

Mortgage rates drifting back towards 7% are making buyers hesitant, stalling the housing recovery.

Inventory remains severely low with just 757,000 units on the market in Q4 2021, well below pre-pandemic levels.

Overall housing starts plunged 14.7% in March, the biggest drop since April 2020, as rising rates sap demand.