Housing Woes: U.S. Homebuilding Hits 11-Month Low Amid Economic Uncertainty

The U.S. housing market continues to face tough times, with single-family homebuilding hitting an 11-month low in June. High mortgage rates and economic uncertainty have stalled home purchases, according to the Commerce Department, which reports a significant drop in both homebuilding and permits for future construction.

Economists warn that prolonged housing market weakness could affect the broader economy. They cite President Donald Trump's tariffs and immigration policies as contributing factors to labor shortages and inflated costs. Despite pressures from Trump, the Federal Reserve is expected to keep interest rates steady in the face of rising inflation.

While housing projects with five or more units saw a spike, single-family permits continue to decrease, particularly in the South and West. As the sector struggles, new housing inventory is now at levels reminiscent of late 2007, suggesting a challenging period ahead for builders and the economy.

(With inputs from agencies.)