US housing starts rise unexpectedly in October

Starts for construction of housing projects with five units or more posted a 4.9% increase to a rate of 382,000 units last month, while residential investment also saw a welcome increase for the first time in 10 quarters.

With interest rates having surged over the past 20 months, homebuying demand has remained somewhat muted throughout this year. Still, the dearth of existing-home listings across the US housing market has helped push buyers toward new construction, with lower borrowing costs also expected to emerge if, as expected, the Federal Reserve begins to cut interest rates in 2024.

Data for September’s homebuilding activity was revised upwards, with starts now believed to have reached a rate of 968,000 units for the month instead of the 963,000 initially reported.