Construction on new homes snaps uptrend, hitting key source of new supply

• Construction on new single-family homes fell 7% to a seasonally adjusted annual rate of 935,000 units.
• This is a turnaround from May’s surprising 18.7% surge.
• Multifamily housing starts fell 11.6% to 482,000 units, the lowest since December.

Housing starts fell in June as higher costs and mortgage rates slowed activity in a key area of the market that has been adding supply.

Construction on new single-family homes fell 7% to a seasonally adjusted annual rate of 935,000 units, breaking a four-month streak of gains and following an 18.7% jump in May.