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US single-family homebuilding rebounded in September, boosted by demand for new construction amid an acute housing shortage, but the highest mortgage rates in nearly 23 years could slow momentum and delay the overall housing market recovery.

That was flagged by other data on Wednesday showing applications for loans to purchase a home plunged last week to levels last seen in 1995. In addition, the jump in housing starts partially recouped the decline in August.

The rebound in homebuilding probably reflected permits approved several months ago before mortgage rates broke above 7%. A survey this week showed confidence among single-family homebuilders slumped to a nine-month low in October, with builders reporting lower levels of traffic.

“In the very short-term, single-family construction activity is likely to increase with permits rising in every month of 2023 thus far, but at some point mortgage rates are likely to put a lid on new construction activity for home purchase,” said Conrad DeQuadros, senior economic advisor at Brean Capital in New York.

Single-family housing starts, which account for the bulk of homebuilding, increased 3.2% to a seasonally adjusted annual rate of 963,000 units last month, the Commerce Department said. Data for August was revised to show starts dropping to a rate of 933,000 units instead of 941,000 units as previously reported.

Single-family starts rose in the Midwest, West and the densely populated South, but plunged 19.0% in the Northeast.

The housing market had shown signs of stabilizing before mortgage rates resumed their upward trend late in the summer, with the rate on the popular 30-year fixed mortgage vaulting above 7% in August. According to the Mortgage Bankers Association, the average contract interest rate on a 30-year fixed-rate mortgage rose 3 basis points to 7.70% last week, the highest since November 2000.

Mortgage rates have risen in tandem with the yield on the benchmark 10-year Treasury note, which has spiked to more than a 16-year high, mostly because of expectations that the Federal Reserve will keep interest rates higher for longer in response to the economy’s resilience. Since March 2022, the central bank has raised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range.

Residential investment has contracted for nine straight quarters, the longest such stretch since the housing market bubble burst, triggering the 2008 global financial crisis and the Great Recession. That downturn probably extended into the third quarter, though overall gross domestic product growth last quarter was likely the fastest since late 2021, thanks to a tight labor market that is underpinning consumer spending.

Stocks on Wall Street were trading lower amid mounting tensions in the Middle East. The dollar rose against a basket of currencies. U.S Treasury prices fell, with the yield on the 10-year bond rising to the highest level since July 2007.

Financial markets expect the Fed will leave rates unchanged at its Oct. 31-Nov. 1 policy meeting, according to CME Group’s FedWatch Tool, given the surge in Treasury yields.

Starts for housing projects with five units or more soared 17.1% to a rate of 383,000 units in September. Overall housing starts accelerated 7.0% to a rate of 1.358 million units in September. Economists polled by Reuters had forecast starts rebounding to a rate of 1.380 million units.

Permits for future construction of single-family homes rose 1.8% to a rate of 965,000 units, the highest since May 2022. Though permits are a leading indicator, economists cautioned against being too optimistic about homebuilding prospects, citing the soaring mortgage rates and souring builder sentiment.

“It’s not lights out for homebuilding, but we don’t know how many more body blows with the Fed’s interest-rate hammer the nation’s housing sector can withstand,” said Christopher Rupkey, chief economist at FWDBONDS in New York.

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Hold that, Tiger: Kelly asks if Dabo saw 2nd half

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Hold that, Tiger: Kelly asks if Dabo saw 2nd half

While Dabo Swinney isn’t inflating LSU‘s grade for beating his team in Saturday’s season opener, Brian Kelly is ready to give the Clemson coach an incomplete for his evaluation.

Both coaches weighed in Tuesday on how LSU’s 17-10 win at Clemson should be viewed. After trailing 10-3 at halftime, LSU outscored Clemson 14-0 in the second half and finished with significant edges in both total yards (354-261) and first downs (25-13).

LSU rose six spots to No. 3 in the AP Top 25 poll Tuesday, while Clemson dropped four spots to No. 8.

“It was a helluva game, down to the last play,” Swinney said in his weekly news conference. “Right out of the gate. It’s like getting the final exam [on] Day 1 of class. They made a 65; we made a 58. Neither one of us were great.”

Kelly had not won a season opener at LSU before Saturday, and the victory was his first with the Tigers against an AP top-5 opponent.

“I thought we dominated them in the second half, so he’s really a really good grader for giving himself a 58, or he’s a really hard grader on us,” Kelly said in his news conference when told about Swinney’s comment.

“Or he didn’t see the second half, which, that might be the case. He might not have wanted to see the second half.”

Kelly added that LSU is moving on to this week’s game against Louisiana Tech.

“Clemson is a darn good football team,” Kelly said. “That’s a top-notch team, and they’re going to be a team in the hunt for [the] playoff picture. We hope we are, too. But it was only one game. So I don’t know if he’s a hard grader or an easy grader, but I like the way that we played in the second half.”

Clemson visits LSU to open the 2026 season.

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Buckeyes seize No. 1; LSU, Canes rise as Tide fall

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Buckeyes seize No. 1; LSU, Canes rise as Tide fall

Ohio State climbed to No. 1 in the Associated Press Top 25 college football poll on Tuesday, LSU and Miami moved into the top five, and Florida State jumped back into the rankings at the expense of Alabama, which plummeted to its lowest spot in 17 seasons.

The defending national champion Buckeyes received 55 of 66 first-place votes to move up two spots after their win over preseason No. 1 Texas. Ohio State is at the top of a regular-season poll for the first time since November 2015.

The Longhorns dropped to No. 7 as the media voters shuffled the rankings following a topsy-turvy Labor Day weekend. It was only the second time — and first since 1972 — that two top-five teams lost in Week 1 and the first time that four top-10 teams lost.

Only three teams in the Top 25 are in the same spot they were in the preseason poll.

Penn State got seven first-place votes and remained No. 2. LSU, which received three first first-place votes, was followed by Georgia and Miami to round out the top five.

Oregon got the other first-place vote and was followed by Texas, the Clemson Tigers, Notre Dame and South Carolina.

LSU jumped six spots after winning at Clemson and Miami got a five-rung promotion for its victory over Notre Dame.

The biggest movers in the poll were Florida State and Alabama after the Seminoles’ 31-17 victory in their head-to-head matchup.

The Seminoles, who were 15 spots outside the Top 25 in the preseason, are now No. 14. The Crimson Tide fell all the way from No. 8 to No. 21 — their lowest ranking since Bama was No. 24 in the 2008 preseason poll. That was the second of Nick Saban’s 17 teams in Tuscaloosa.

It’s been quite a turnabout for Florida State. The Seminoles were No. 10 in the 2024 preseason, lost their first two games, finished 2-10 and weren’t ranked again until now.

Utah, at No. 25, joins Florida State as the only newcomers to this week’s poll. The Utes are ranked for the first time since last October, when they were at the front end of a seven-game losing streak.

Utah had received the second-most points, behind BYU, among teams outside the preseason Top 25, but the Utes got more credit for beating UCLA on the road than the Cougars received for hammering FCS foe Portland State.

Boise State, which had been No. 25, received no votes following its 34-7 loss at South Florida. The Broncos had appeared in 14 straight polls.

The other team to drop out of the poll was No. 17 Kansas State, which followed up its season-opening loss to Iowa State with a last-minute home win over FCS team North Dakota.

Ohio State is the first team to take over the top spot in the first regular-season poll since Alabama in 2012. It was the biggest jump to No. 1 in the first regular-season poll since USC was promoted from No. 3 in 2008.

Texas’ fall was the biggest for a preseason No. 1 since Auburn dropped to No. 8 in the first regular-season poll of 1984.

LSU has its highest ranking after Week 1 since it was No. 3 in 2012, and Miami has its highest ranking after Week 1 since it was No. 5 in 2004.

South Carolina is in the top 10 in the regular season for the first time since it was No. 8 in December 2013.

CONFERENCE CALL

SEC: 10 (Nos. 3, 4, 7, 10, 13, 18, 19, 20, 21, 22)

Big Ten: 6 (Nos. 1, 2, 6, 11, 15, 23)

ACC: 4 (Nos. 5, 8, 14, 17)

Big 12: 4 (Nos. 12, 16, 24, 25)

Independent: 1 (No. 9)

RANKED VS. RANKED

No. 15 Michigan at No. 18 Oklahoma: This weekend’s game will be the first meeting since Oklahoma beat the Wolverines in the Orange Bowl to win the 1975 national championship. Wolverines freshman QB Bryce Underwood gets put to the test in his second start.

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Venables: Michigan’s Underwood ‘a little different’

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Venables: Michigan's Underwood 'a little different'

Oklahoma coach Brent Venables said Bryce Underwood “looks to be wise beyond his years” and compared Michigan‘s freshman quarterback to former Clemson national championship QB Trevor Lawrence on Tuesday ahead of the No. 18 Sooners’ Week 2 visit from the No. 15 Wolverines.

Underwood, ESPN’s No. 1 overall recruit in the 2025 class, will make his second career start at Oklahoma on Saturday (7:30 p.m. ET, ABC).

The coveted freshman earned Michigan’s starting job at the end of fall camp, beating out a collection of experienced passers on the depth chart including offseason portal additions Mikey Keene (Fresno State) and Jake Garcia (East Carolina). Underwood delivered a smooth college debut against New Mexico in Week 1, completing 21 of 31 passes for 251 yards and a touchdown in Michigan’s 34-17 win.

At Oklahoma, Underwood is set to face a much stiffer challenge against Venables, who resumed control of the Sooners’ defensive playcalling ahead of the 2024 season, and an experienced defense that held Illinois State to 151 yards of total offense in Week 1.

The former Clemson defensive coordinator compared Underwood to Lawrence, the five-star quarterback prospect who started as a freshman in 2018 and led the Tigers to a national championship win over Alabama.

“He’s a little different,” Venables said of Underwood. “It reminds me a lot of a Trevor Lawrence. Quick. Decisive. Accurate. Poised. Tough. Consistent. There’s a reason he was the No. 1 player in America. And he’s got a maturity and a work ethic and leadership agility to go along with that.”

As Oklahoma seeks to rebound from a 6-7 finish last fall, a new-look Sooners offense will get a test of its own Saturday.

Behind transfer QB John Mateer and first-year offensive coordinator Ben Arbuckle, Oklahoma gained 495 yards of offense in its 35-3, season-opening win over Illinois State. Mateer, who arrived in the offseason from Washington State alongside Arbuckle, passed Baker Mayfield for the most passing yards by an Oklahoma QB in a debut with 392 yards.

On Tuesday, Venables highlighted the Wolverines’ experience on defense, particularly in the front seven, as a defining challenge for the Sooners in an intriguing Week 2 matchup between two of college football’s most storied brands.

“[It’s] a defense that for the last several years has been one of the gold standards of college football when it comes to playing good defense,” Venables said. “It’s going to be a great physical matchup, and for us, a great litmus test to where we’re at.”

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