"January Sees Sharp 14.8% Drop in US Housing Starts"

Housing starts in the U.S. experienced a significant 14.8% drop in January, marking the sharpest decline since April 2020, as wintry weather and builder activity curtailment impacted construction. Single-family and multi-family construction both decreased, with the Northeast being the only region to see an increase. Despite the slowdown, builders remain optimistic about future sales and demand due to expected falling interest rates. The housing market's share of new homes in overall sales has risen to 30%, and while the drop in starts may be attributed to weather, mortgage rate increases could continue to weaken housing activity until the Federal Reserve signals a clearer policy intent.