US Nov housing starts falls more than expected

According to data from the US Commerce Department, US housing starts fell more than expected in November after seeing the highest level in October since August 2007.

Data from US Census Bureau and the Department of Housing and Urban Development reveals that privately owned housing starts stood at 1,090,000 with a decrease of 18.7% from 1,340,000 registered in October and 6.9% from 1,171,000 registered in the same period of last year. Market expectations were calling for housing starts to stand at 1,230,000 in November.

Building permits in November also dropped by 4.7% month on month and by 6.6% on a yearly basis.

The drop in housing starts in November was attributed to the increasing mortgage rates which cause house purchases to be less affordable.