United States single family construction spending dropped in September

Private investment in single-family residential construction contracted in September as borrowing costs surged, Scotsman Guide and MarketScreener both reported. According to Scotsman Guide, the Federal Reserve raised its benchmark interest rate for the first time in three years, coinciding with an increase in Treasury yields. [1][2]

Data from the Census Bureau showed the seasonally adjusted annual rate of new private single-family construction spending reached approximately $403.4 billion in September, Scotsman Guide reported. This expenditure was flat compared to August but represented a 2.4 percent decline from the $413.2 billion recorded in the previous year. [1]

Renovation involves the process of repairing, improving, or restoring damaged, broken, or outdated residential and commercial structures. Scotsman Guide noted that higher borrowing rates pushed mortgage demand, residential home sales, and homebuilder sentiment lower throughout the month. [1][3]

Prospective buyers faced wider economic pressures during the period, according to Scotsman Guide. These factors included trade tariffs implemented by the Trump administration as well as the ongoing conflict in Iran, which entered its ninth month in September. [1]