Housing Starts & Permits Plunge In August As Homebuilder Confidence Nears COVID Lows

On the back of another tumble in homebuilder confidence (though still a long way from homebuyer confidence)...

...building permits were expected to decline in August (while starts were expected to rebound from July's big plunge).

However, both Starts and Permits dropped MoM, dramatically worse than expected (Starts -2.6% MoM vs +6.7% MoM exp, Permits -2.7% MoM vs -1.5% MoM exp)

On a SAAR basis, Starts at back near post-COVID lows while Permits are holding in a four year range...

The details of the homebuilder confidence data suggest this should not have come as a surprise...

It seems recent rises in the mortgage rate (and inventories already at over-stuffed levels, given the slowness of sales) has finally dented the homebuilders' self-satisfying confidence... and the lack of affordability leaves the American Dream fading into Renter Nation...