Housing construction and building permits in the US declined in March

The US housing index and approval for new projects declined in March, leaving weaknesses in the construction of new homes. The number of newly built residential buildings declined by 0.3% in March compared to the previous month to the 1.139 million seasonally adjusted. Building permits decreased by 1.7% compared to February to 1.269 million in March.

The latest data missed the expectations of economists, which predicted an increase of 4.1% for new homes and growth of 0.3% in March.

Data on the construction of new homes is variable from month to month and can undergo major revisions.

In the first three months of the year, the number of new homes started decreasing by 9.7% compared to the same period last year. The three-month licenses fell by 5.4% on an annual basis.

The factors including rising construction costs and a lack of available land have raised prices and put bricks on the housing market in 2018. Recent housing data shows that the market for existing dwellings can be reversed while interest rates are declining.