Connect with us

Published

on

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.

Continue Reading

Sports

Brayden Schenn joins brother with 1,000th game

Published

on

By

Brayden Schenn joins brother with 1,000th game

WASHINGTON — Brayden Schenn played his 1,000th regular-season NHL game when he and the St. Louis Blues beat the Washington Capitals 5-2 on Thursday night.

Older brother Luke played his 1,000th game Oct. 17 with the Nashville Predators. The Schenns are the eighth set of brothers to each reach that milestone and the first to do so in the same season.

“I’ve always said you don’t get there without the help of tons of people,” Brayden said after his team’s morning skate. “Family being one and coaches and players and teammates and people in the organization. Obviously, you have to embrace the day-to-day grind of the ups and downs and just how hard this league is, but, yeah, pretty special that we have best buddies that push each other every day and get to do it in the same year.”

Blues players celebrated the occasion with Schenn shirts and hats with the captain’s No. 10 on them. Father Jeff gave a pregame speech in the locker room after coach Jim Montgomery said, “Schenner and his bro both getting 1,000 games in the same season is a tribute to the great family raised by Jeff and his wife.”

Jeff Schenn said Brayden was his favorite player on the Blues and tied for his favorite overall, of course, with Luke.

“Honored and privileged and very proud to be part of the big day and the big journey that goes along with it,” their dad said. “You see the hard work and the dedication and the bumps and the bruises and everything you guys put into it. … Just so excited and happy to be here and awful proud of him.”

Montgomery said after the win that Jeff Schenn looked very comfortable speaking in front of the group.

“Jeff and his wife, Brayden’s parents, they raised four great kids and two have played 1,000 games in the NHL,” Montgomery said. “His message was well-received, and you could tell by our start that we wanted to play for our captain.”

Dylan Holloway, who scored twice, said because it was Schenn’s 1,000th game, the Blues “wanted this one bad.”

The Capitals acknowledged the milestone with a message on arena videoboards and an announcement during the first period.

Brayden getting to 1,000 comes amid talk ahead of the March 7 trade deadline that teams are interested in acquiring both of them in separate moves. The Blues are on the fringe of the playoff race in the Western Conference, while the Predators are far out of contention.

“The times I’ve gotten traded, I didn’t expect to get traded, so you really never know,” Brayden said, adding he has loved his time with St. Louis. “It’s a business and that just comes with the flows of kind of where we’re positioned, five points out of the playoffs. But it’s the trade deadline, so some people make rumors. … You just take it a day at a time and just focus on your game and play.”

Brayden, 33, has three years left on his contract at an annual salary cap hit of $6.5 million. Luke, 35, has one more season left after this one at $2.75 million.

The Schenn brothers have played together in the NHL before, spending 3½ seasons with the Philadelphia Flyers from 2013 to 2015. Brayden won the Stanley Cup with the Blues in 2019, then Luke back to back with the Tampa Bay Lightning in 2020 and 2021.

Continue Reading

Sports

Pens’ Bunting out indefinitely after appendectomy

Published

on

By

Pens' Bunting out indefinitely after appendectomy

Pittsburgh Penguins forward Michael Bunting is out indefinitely after undergoing surgery to remove his appendix.

“He’ll be out here for the next little while,” Penguins coach Mike Sullivan said Thursday. “I don’t know the time frame at this point, but that’s that.”

Bunting notched an assist in Pittsburgh’s 6-1 setback to the Philadelphia Flyers on Tuesday. He has 29 points (14 goals, 15 assists) and a minus-18 rating in 58 games this season.

Bunting, 29, has totaled 210 points (90 goals, 120 assists) and a plus-10 rating in 326 career games with the Arizona Coyotes, Toronto Maple Leafs, Carolina Hurricanes and Penguins.

Continue Reading

Sports

Bruins F Frederic (lower body) week-to-week

Published

on

By

Bruins F Frederic (lower body) week-to-week

Boston Bruins forward Trent Frederic is considered week-to-week with a lower-body injury, the team announced.

Frederic sustained the injury during the Bruins’ 5-4 overtime loss to the Toronto Maple Leafs on Tuesday. The timing of the injury is significant for Frederic, who is considered an attractive candidate to be shopped ahead of the NHL trade deadline on March 7.

A pending unrestricted free agent, Frederic has 15 points (eight goals, seven assists) and a minus-14 rating in 57 games this season.

Those totals are a far cry from his career season in 2023-24, when he totaled 40 points (18 goals, 22 assists) and a plus-9 rating in 82 games.

Frederic, 27, has totaled 109 points (55 goals, 54 assists) and a plus-20 rating in 337 career games since being selected by the Bruins with the 29th overall pick of the 2016 NHL Draft.

Continue Reading

Trending