US housing starts unexpectedly decline to 2020 lows

Housing starts in the US fell 5.5% to an annualized rate of 1.277 million in May 2024, the lowest since July 2020, from April’s downwardly revised 1.352 million and well below the forecast of 1.37 million.

This unexpected decline shows that high interest rates started to weigh again on the housing market.

Single-family housing starts fell 5.2% to 982,000, the lowest since October 2023.