US single-family housing starts fall; building permits lowest in 10 months

U.S. single-family homebuilding fell for a third consecutive month in June, with permits for future construction dropping to the lowest level since August 2025, according to Commerce Department data. Higher mortgage rates, a glut of unsold new homes, and rising land and material costs are constraining the market. The 30-year fixed mortgage rate averaged 6.55%, an 11-month high, partly due to renewed U.S.-Iran hostilities. A bipartisan housing affordability bill was passed but economists say its impact will take time. Overall housing starts rose 19% due to a surge in multi-family projects, but single-family starts slipped 0.2% to 895,000 units annually. Consumer sentiment improved briefly during a ceasefire but remains fragile. The housing drag on GDP is expected to persist for another quarter or two.