Washington Housing Starts Fall to 1.246M, Supply Shock
Why Did U.S. Housing Starts Fall in October 2025? Although headline housing starts fell in October 2025, the decline reflected a financing shock colliding with an abrupt multifamily retrenchment. Total starts slid 4.6 percent to 1.246 million SAAR, below the 1.33 million consensus. Overall building permits decreased 0.2% in October to a 1.41-million-unit annualized rate, hinting at a cooling pipeline. Financing panic crushes Mortgage Affordability Thirty year fixed rates hovered near 7 to 8 percent, lifting buyer and builder costs and squeezing Mortgage Affordability. Carrying costs for land and construction loans rose, trimming marginal project profitability. Materials and labor remained expensive, with skilled trade shortages limiting feasible starts despite lingering demand. Even after recent Fed rate cuts , markets saw Treasury yields jump and stocks wobble, reinforcing builder caution about where financing costs settle next. Rate Volatility freezes multifamily groundbreakings Rat...