US Housing Starts Rebound in April After March Dip

Housing starts in the US unexpectedly increased by 2.2% in April to an annual rate of 1.4 million units, due to limited inventory and increased homebuyer demand. However, compared to the same period last year, housing starts are down by 22.3%. Applications to build also fell by 1.5% to an annualized rate of 1.42 million units. The National Association of Home Builders/Wells Fargo Housing Market Index rose five points to 50, indicating a positive sentiment in the single-family housing market. Despite the increase, the housing market remains in a slump due to the Federal Reserve's aggressive campaign to tighten policy and slow the economy.