Building permits for future housing construction in the US fell to a five-month low in April, suggesting the housing market is slowing as rising mortgage rates help reduce the affordability of the financially disadvantaged.
Another U.S. Department of Commerce report released Wednesday also showed a record number of homes that have not yet been built.
The construction of houses was already limited by the rising prices as well as by the lack of materials. The housing market is the sector of the economy that is most sensitive to interest rates, with building permits being a leading indicator for the industry.
Building permits fell 3,2% year-on-year in a seasonally adjusted annual rate to 1,81 million units, the lowest level since last November. They increased by 3,1% on an annual basis.
SOURCE: CIPE