Higher Interest Rates Keep Single-Family Housing Starts Flat in April

Single-family starts remained flat in April as interest rates moved above 7% last month and builders were dealing with tighter lending conditions. Overall housing starts increased 5.7% in April to a seasonally adjusted annual rate of 1.36 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The April reading…

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Interest Rates, Demand Push Single-Family Starts Higher

Pent-up demand, moderating interest rates and a lack of existing inventory helped push single-family starts in February to their highest level since April 2022. Overall housing starts increased 10.7% in February to a seasonally adjusted annual rate of 1.52 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The…

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The Tide Has Turned

The Fed has said it: interest rates are coming down. Fed Chairman Jay Powell surprised markets in early December when he announced, somewhat unexpectedly, that the Fed was not planning to raise rates any further, and, in fact, was projecting three rate cuts in 2024 now that inflation has cooled.  Surprisingly, the Fed’s quarterly economic projections released in December, the…

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Dodge Momentum Index Declines in July

The Dodge Momentum Index (DMI), issued by Dodge Construction Network, declined 0.9% in July to 193.4 (2000=100) from the revised June reading of 195.1. Over the month, the commercial component of the DMI remained relatively flat, ticking down 0.2%, while the institutional component fell 1.9%. The DMI is a monthly measure of the initial report for nonresidential building projects in…

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Equipment Finance Outlook

By Mark S. Kuhar In what is likely to be a more challenging year for both the economy and the equipment finance industry, the 2023 forecast for equipment and software investment growth is 4.2%, according to the 2023 Equipment Leasing & Finance U.S. Economic Outlook.  The report released by the Equipment Leasing & Finance Foundation also forecasts sluggish U.S. GDP…

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Housing Permits Decline in March

The single-family housing market continued to show signs of softening in March as permits and starts declined due to rising mortgage interest rates and ongoing supply chain bottlenecks that continue to delay construction projects and raise home building costs. Due to strong multifamily production, overall housing starts increased 0.3% to a seasonally adjusted annual rate of 1.79 million units, according…

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