New US Home Construction , Sinks to Slowest Pace in 4 Years.<br />Government data released on June 20 indicates that new home construction in America dropped in May to the slowest pace since June 2020, Yahoo Finance reports. .<br />Housing starts dropped 5.5%, <br />and building permits dipped 3.8%.<br />Home completions also fell to the lowest amount since September 2022.<br />High interest rates, set by the Fed to help tame inflation, have resulted in high mortgage rates.<br />But recent data has suggested that inflation has started to cool, which may give the Fed the confidence it needs to lower rates.<br />The weakest U.S. housing starts <br />since the pandemic-led shutdowns <br />are fairly convincing evidence of <br />restrictive monetary policy. , Sal Guatieri, senior economist at BMO Capital Markets, via note.<br />While a growing population and <br />workforce are providing some support, <br />US home builders won’t become <br />busier until borrowing costs fall, Sal Guatieri, senior economist at BMO Capital Markets, via note.<br />Meanwhile, other data released on June 20 showed that first-time applications for unemployment benefits dropped last week.<br />However, continuing claims rose <br />for a seventh consecutive week
