Rising mortgage rates cause U.S. housing starts to fall in September

The U.S. Commerce Department reported that housing starts fell 8.1% in September to 1.439 million from 1.566 million in August.

The rise in mortgage rates and the price of building materials has made it more difficult to start building a house.

Single-family housing starts decreased by 4.7%, while construction of multifamily housing, including apartments and condominiums, decreased by 13.2%.

Residential building permits increased by 1.4% to 1.564 million units.

According to the U.S. Mortgage Bankers Association (MBA), the average mortgage rate for U.S. home loans rose above 6.9% for the first time since 2002.

The average interest rate on 30-year fixed-rate mortgages rose to 6.94% last week from 6.81% the previous week.

The average mortgage rate has risen steadily since the beginning of 2022, given the yield on 10-year U.S. Treasury bonds, which is the benchmark for mortgage rates.

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