Market Commentary

Home Construction

House Sales

Not surprising, new home construction fell in September. The peak in housing was late summer. Permits for new construction fell by 7.7% from August, back to last year’s level. There was a substantial collapse in multifamily construction, whereas single-family homes shrank 1%. Finally, some of the slow down was a result of disruptions in the supply of materials making it more difficult for builders to complete projects and start new ones. The number of completed projects fell by 5% the lowest level in over a year.

Of note was the number of mortgage applications that recovered in September. This could be a prelude of a recovery.