• Housing starts fell to 1.28 million (SAAR) in August, down 11.3% from revised July 2023 figures and down 14.8% from August 2022, according to the U.S. Census Bureau. 
• Single family housing starts totaled 0.94 million (SAAR) in August, down 4.3% from July.
• Housing permits issued in August were up 6.9% from July and down 2.7% from a year ago, to 1.54 million (SAAR). 
• 1.41 million (SAAR) homes were completed in August, up 5.3% from July and up 3.8% year over year.

What happened: Housing starts pulled back again amidst falling homebuilder sentiment, but permits are up from last month. 

Why this matters: Homebuilder sentiment has fallen into the negative, and we are seeing that reflected in housing starts, which hit their lowest level since spring 2020. Permits are up on a monthly basis and remain a bright spot, indicating some builders are hopeful that things will turn around in the near future. Mortgage rates continue to be a major hurdle, working to both shrink buyer pools and keep existing home sellers on the sidelines. Newly completed homes are hitting the market at a time when there are few other options for home shoppers, and builders are able to offer incentives to attract buyers on the fence. Thus, the increase in new construction completions is welcomed, even as we approach the typically slower fall season.