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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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Mark Carney’s Liberal Party wins Canada election, according to Canadian broadcasters

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Mark Carney's Liberal Party wins Canada election, according to Canadian broadcasters

Mark Carney’s Liberal Party has won the election in Canada, according to Canadian broadcasters, but it is too soon to say whether they will form a majority government.

Mr Carney, who took over as prime minister after Justin Trudeau stepped down earlier this year, has beaten the leader of the Conservative Party Pierre Poilievre, according to CBC and CTV News projections.

However, it is too soon to say whether the Liberals will form a majority government, they added. The party has not yet secured the 172 electoral districts it needs for a majority.

FILE PHOTO: Conservative Party of Canada leader Pierre Poilievre speaks at an election campaign event in Brampton, Ontario, Canada April 9, 2025. REUTERS/Carlos Osorio/File Photo
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Conservative leader Pierre Poilievre. Pic: Reuters

The election initially appeared to be a clear-cut race for the opposition Conservatives, who were enjoying a double-digit lead over the Liberals before Mr Trudeau resigned, and an intervention by Donald Trump led to a surge in support for Mr Carney’s party.

Mr Trump has repeatedly called for Canada to become the 51st US state since he was elected president for a second time and has imposed sweeping tariffs on Canada.

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Trump on why he wants Canada to be 51st state

Mr Carney has vowed to take a tougher approach with Washington over its tariffs and has said Canada will need to spend billions to reduce its reliance on the US.

Liberal supporters react after Canadian broadcasters project their party has retained power. Pic: Reuters
Liberal supporters react after Canadian broadcasters project their party has retained power. Pic: Reuters
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Liberal supporters celebrate after Canadian broadcasters project their party has retained power. Pics: Reuters

If Mr Carney’s party only captures a minority of the House’s 343 seats, he will be forced to negotiate with other parties in order to stay in power.

Such minority governments rarely last longer than two-and-a-half years in Canada.

Canadians went to the polls after 11 people were killed in a deadly attack at a Vancouver street fair over the weekend that led to the suspension of campaigning for several hours.

Police have ruled out terrorism and said the suspect is a local man with a history of mental health issues.

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Mr Carney previously ran Canada’s central bank and later became the first non-Briton to become governor of the Bank of England.

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Lightning’s Hagel leaves G4 loss after high hit

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Lightning's Hagel leaves G4 loss after high hit

Tampa Bay Lightning forward Brandon Hagel left his team’s 4-2 loss to the host Florida Panthers in Game 4 of their Eastern Conference first-round series on Monday night after a high hit from defenseman Aaron Ekblad that wasn’t penalized.

With less than 9 minutes left in the second period, Hagel played the puck out of the Tampa Bay zone near the boards. Ekblad skated in on him and delivered a hit with his right forearm that made contact with Hagel’s head, shoving him down in the process.

The back of Hagel’s head hit the ice. He was pulled from the game for concussions concerns. Ekblad did not receive a penalty on the play.

The Lightning trailed the Panthers 1-0 at the time of the hit, but Mitchell Chaffee and Erik Cernak scored two goals in 11 seconds after Hagel left the game to give Tampa Bay a 2-1 lead. When the teams returned for the third period, Hagel was not on the bench.

The Panthers rallied in the third, as Ekblad, Seth Jones and Carter Verhaeghe scored to give Florida a 3-1 series lead. Game 5 is in Tampa on Wednesday.

Game 4 saw Hagel return to the Tampa Bay lineup after he served a one-game suspension for interference on Florida captain Aleksander Barkov in Game 2. The NHL ruled the Barkov wasn’t eligible to be hit and that Hagel made head contact with him. It was the first suspension of this career.

Hagel was one of the best two-way wingers in the league this season, with 35 goals and 55 assists in 82 games for the Lightning.

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Nimmo matches Mets franchise record with 9 RBIs

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Nimmo matches Mets franchise record with 9 RBIs

WASHINGTON — Brandon Nimmo hit a grand slam and matched a franchise record with nine RBIs, helping the New York Mets past the Washington Nationals in a 19-5 rout on Monday.

Nimmo also hit a three-run drive in his seventh career multihomer game. The 32-year-old outfielder had four hits and scored four times after beginning the day with a .192 batting average.

All of Nimmo’s damage came in a three-inning span. According to ESPN Research, he became only the third player to pull off that feat in that time frame since the RBI became an official stat in 1920.

The win came a day after New York let a six-run lead slip in an 8-7 loss to the Nationals. The matinee bounce-back earned the club split of the four-game series. The Mets have won nine of 11 overall to improve to a major league-best 20-9.

“Really proud of the guys for flushing yesterday, coming back today and really going out there and work on all sides of the ball,” Nimmo said. “It was really fun to play today.”

Jeff McNeil and Mark Vientos also homered for New York, which finished with 21 hits. Vientos connected for a three-run drive against Washington infielder Amed Rosario in the ninth.

James Wood and Nathaniel Lowe homered for Washington in the eighth.

The Mets had a 3-0 lead when Colin Poche replaced Nationals starter Trevor Williams (1-3) with two on in the sixth. Nimmo greeted the left-hander by ripping a 2-0 fastball deep to right-center.

An inning later, the Mets had the bases loaded when Nimmo sent Cole Henry‘s fastball into the right-field seats for his second career grand slam.

Nimmo added a two-run double in the eighth to tie the franchise record for RBIs set by Carlos Delgado in the first game of a doubleheader against the New York Yankees on June 27, 2008.

“Tomorrow is a new day as well,” Nimmo said, quickly turning the page from the win. “And we’re just going to have to take it a day at a time, and treat it like it is its own.”

McNeil, who made his season debut Friday after sitting out 25 games because of a right oblique strain, hit the first pitch of the fifth deep to right for his first home run of the year.

“One hundred percent,” Mets manager Carlos Mendoza said, when asked if McNeil’s start has been good to see. “When you see him pulling the ball like that, and going deep? That’s a good sign. It’s good to see him continue with that approach.”

Griffin Canning (4-1) pitched five innings of four-hit ball for New York. He has won four consecutive starts for the first time in his six-season career.

Jose Urena earned his first save of the season. He gave up five runs in three innings in his Mets debut.

Williams yielded five runs in a season-high 5⅓ innings.

The Associated Press contributed to this report.

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