July 17 2026

Residential construction rebounded in June as housing starts and completions recovered from May's unusually weak levels, though building permits continued to trend lower. The latest Census Bureau data suggests that while builders remain cautious about future projects, construction activity itself regained momentum after last month's sharp pullback. Privately owned housing starts jumped 19.0% to a seasonally adjusted annual rate of 1.427 million , reversing much of May's decline and coming in 3.5% above the June 2025 pace. The headline increase was driven almost entirely by multifamily construction, with starts for buildings containing five units or more surging to 513k . Meanwhile, single-family starts were essentially unchanged, slipping just 0.2% to 895k . Building permits, which provide a look at future construction activity, moved in the opposite direction. Total permits declined 3.0% to an annual rate of 1.367 million , down 2.3% from a year earlier. Single-family authorizations fell 2.4% to 871k , while multifamily permits were issued at a rate of 445k . The sharp rebound in total housing starts also reinforces the notion that May's exceptionally weak reading was largely the result of unusually volatile multifamily data rather than a broad deterioration in residential construction. Single-family activity remained remarkably steady over the two-month period, while multifamily starts swung from one of their weakest readings in years to one of their strongest.

July 17 2026

Pending home sales declined in June as elevated mortgage rates and record-high home prices continued to weigh on buyer demand. The National Association of Realtors' Pending Home Sales Index (PHSI), which tracks signed contracts on existing homes, fell 5.4% from May and was down 0.3% compared with a year earlier. The latest report suggests affordability remains a significant hurdle for prospective buyers. While employment gains continue to support household finances, higher borrowing costs and elevated home prices have kept many buyers, particularly first-time purchasers, on the sidelines. “The highest mortgage rates in nearly a year and the record-high national median home price together are contributing to a tepid housing market that is especially difficult for first-time homebuyers,” said NAR Chief Economist Lawrence Yun. He added that continued job growth could help support housing demand, while noting that pending sales should be viewed as an indicator of future closings rather than a direct measure of completed transactions due to contract contingencies and fallout rates. Contract activity weakened across every major region during the month. The Northeast posted the smallest monthly decline at 3.0% , while the Midwest recorded the largest drop at 8.9% . The South fell 4.1% and the West declined 4.7% . Compared with a year earlier, pending sales increased 2.2% in the Northeast and 0.3% in the Midwest, while the South and West posted declines of 0.9% and 1.1% , respectively.

July 17 2026

Builder sentiment weakened further in July as affordability challenges and ongoing economic uncertainty continued to weigh on the market for new single-family homes. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) slipped two points to 34 , marking the 15th consecutive month the index has remained below 40--the longest such stretch since 2012. The latest reading reflects persistent headwinds for the industry, with elevated mortgage rates, rising material costs, expensive land and ongoing labor shortages continuing to limit both builder confidence and buyer demand. All three major components of the index moved lower in July. Current sales conditions declined one point to 37 , while sales expectations over the next six months fell two points to 43 . Traffic of prospective buyers also dropped two points to 23 , indicating many prospective purchasers remain on the sidelines. “Many potential buyers remain on the sidelines as they wait for lower mortgage rates, more certainty on inflation and a clearer economic outlook,” said NAHB Chairman Bill Owens. He added that the recently enacted 21st Century ROAD to Housing Act includes provisions intended to address land-use, zoning, regulatory and financing challenges, though those reforms will take time to produce results. NAHB Chief Economist Robert Dietz said affordability remains the industry's biggest obstacle, citing elevated mortgage rates, costly land, rising material prices and persistent skilled labor shortages. While he called the new housing legislation a positive step toward expanding supply and lowering housing costs, he noted that additional policy changes at the state and local levels will be needed to meaningfully improve conditions.