Construction on new homes jumps to a 15-month high, but the real-estate slump isn’t over

U.S. housing starts rose 11% in March to a 1.5 million annual rate from 1.36 million in February, helped by warmer weather, but the broader real-estate slump remains intact. Builders remain cautious as permits fell to a weak ~1.37 million annual rate, sales are near multi-year lows, inventories of unfinished and completed-but-unsold homes are elevated (completed unsold homes at a 17-year high), and mortgage rates remain above 6% for a 30-year fixed loan. The piece notes that a recent oil-price spike tied to the Iran war and a resurgence in inflation pushed interest rates higher and weighed on stocks. Overall, the data provides a mixed signal: a near-term construction uptick that is unlikely to reverse the broader housing slowdown, a continued drag on economic growth and potential negative implications for equity markets if higher rates and inventory overhang persist.