Housing Starts Plunge 9% in September, Worsening Demand Concerns

U.S. housing starts fell 9% in September, posting the fourth consecutive monthly decline and missing consensus expectations. The contraction deepens concerns about residential demand as mortgage rates remain elevated amid broader macroeconomic headwinds tied to energy price shocks.

The sharp slowdown in residential construction adds pressure on GDP growth expectations heading into Q4 2026. Treasury Secretary Bessent signaled mortgage rates should eventually decline as the energy shock dissipates, but the near-term trajectory for housing demand remains weak. #economy #realestate #markets