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US Housing Starts, Building Permits Stall as Mortgage Rates Bite

  • Residential starts dropped 0.2% in April, permits fell 3.2%
  • Construction backlogs climbed to the highest since 1974
A contractor installs wall insulation in a home under construction in Park City, Utah.
A contractor installs wall insulation in a home under construction in Park City, Utah.Photographer: George Frey/Bloomberg
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US new-home construction slipped in April amid ongoing supply-side challenges and the steepest climb in mortgage rates in decades.

Residential starts decreased 0.2% last month to a 1.72 million annualized rate after a downwardly revised 1.73 million pace in the prior month, according to government data released Wednesday. The median estimate in a Bloomberg survey of economists called for a 1.76 million pace.