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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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MLB: Iassogna crew chief, plate umpire for ASG

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MLB: Iassogna crew chief, plate umpire for ASG

NEW YORK — Dan Iassogna will be the umpire crew chief and work the plate during Tuesday night’s All-Star Game at Atlanta’s Truist Park.

His crew will include Marvin Hudson at first, Chris Segal at second, Jansen Visconti at third, Jeremie Rehak in left and Erich Bacchus in right, Major League Baseball said Thursday.

Iassogna, 56, will work his second All-Star Game. He was at third base for the 2011 game at Arizona.

He worked his first big league game in 1999, was hired to the major league staff in 2004 and appointed a crew chief ahead of the 2020 season. Iassogna umpired the World Series in 2012, ’17 and ’22 along with eight League Championship Series and seven Division Series.

Segal, Visconti, Rehak and Bacchus will work their first All-Star Games and Hudson his second after being in left field in 2004 at Houston.

Tony Randazzo will be the replay umpire in New York.

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A’s Rooker joins list of HR Derby participants

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A's Rooker joins list of HR Derby participants

WEST SACRAMENTO, Calif. — Athletics slugger Brent Rooker is adding his name to the list of Home Run Derby participants.

Rooker announced Thursday that he’s participating in the event, which takes place Monday in Atlanta. He will become the first Athletics player in the Home Run Derby since Matt Olson in 2021.

“Competing in the Home Run Derby has always been a dream of mine,” Rooker said in an Instagram post. “Can’t wait to make it happen next week in Atlanta! See ya there!”

Rooker, 30, entered Thursday with a .270 batting average, 19 homers and 50 RBIs, putting him on pace for a third straight season of at least 30 homers. He went deep 30 times in 2023 and had 39 homers in 2024.

His 58 homers since the start of the 2024 season rank him third among all American League players.

The only A’s to win the Derby were Mark McGwire in 1992 and Yoenis Céspedes in 2013 and 2014.

Other announced participants include Atlanta’s Ronald Acuña Jr., Minnesota’s Byron Buxton, Tampa Bay’s Junior Caminero, Pittsburgh’s Oneil Cruz, Seattle’s Cal Raleigh and Washington’s James Wood.

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O’s trade reliever Baker to Rays for draft pick

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O's trade reliever Baker to Rays for draft pick

BALTIMORE — The Orioles traded right-handed reliever Bryan Baker to AL East rival Tampa Bay on Thursday in exchange for the 37th overall pick in the 2025 MLB amateur draft, a sign that one of baseball’s most disappointing clubs could be sellers at the upcoming trade deadline.

Orioles general manager Mike Elias wouldn’t completely commit to that idea. Speaking to reporters before Thursday’s split doubleheader against the New York Mets, he cited the 2024 Detroit Tigers, who traded players off their major league roster but held on to ace Tarik Skubal and then surged into a playoff spot.

Elias did, however, acknowledge the possibility of selling on a day that began with last-place Baltimore (40-50) sitting 12½ games behind the division-leading Toronto Blue Jays and seven out of the final AL wild-card spot.

“I think it’s a step in that direction,” said Elias three weeks before the July 31 deadline. “There’s no way around that. The timing of the draft, and when you have draft picks involved in the trades, kind of front-loads these decisions, and it’s earlier than my comfort level. But we thought it was a really good return and a good trade for everyone. So, we did it.”

The draft begins Sunday. In a corresponding move, the Orioles selected the contract of catcher David Bañuelos from Triple-A Norfolk.

After a dreadful start that brought the May dismissal of manager Brandon Hyde, the Orioles have steadied under interim skipper Tony Mansolino, playing to a 21-14 record since a loss to St. Louis on May 28.

Baker was a solid part of that, posting a 3.52 ERA, striking out 49 batters and posting a 1.096 WHIP in 38⅓ innings as the setup man for closer Felix Bautista.

“This is a team that is moving in the right direction, and we still have a lot of time left before the deadline, but this was a trade with the draft coming up in a couple days that we had to make a decision on,” Elias said. “We didn’t want to pass up on the opportunity. Hopefully, we can use the pick wisely, bring a lot of value back, and Bryan’s going to a good place.”

Mansolino is also hoping his team will get replenishments in the form of players eventually returning from the injured list. That sizable group includes several possible starting pitchers: Grayson Rodriguez (shoulder), Albert Suarez (shoulder), Tyler Wells (elbow) and Kyle Bradish (Tommy John surgery).

Meanwhile, Baltimore will now have four of the first 37 and seven of the first 93 draft picks.

“All the drafts are important, but when you have this amount of picks, it becomes more important, there’s no question about it,” Elias said. “There’s just a much bigger opportunity ahead of us, and the draft is a lifeblood for our franchise.”

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