"December 2023 Sees Decline in Housing Starts Despite Mortgage Rate Drop"

Despite a sharp drop in mortgage rates, U.S. home construction fell in December for the first time in four months, with housing starts decreasing 4.3% to an annual rate of 1.46 million units. However, applications to build rose, indicating future construction growth. The decline in construction was attributed to a substantial drop in single-family home construction. Lower interest rates have improved housing affordability conditions, prompting optimism among homebuilders, but the housing market is facing new challenges such as higher prices and shortages of labor and lumber.