US Housing Market Shows Signs of Life After Mortgage Rates Fall

  • Existing home sales, housing starts and buying plans surge
  • Mortgage rates fall on anticipation for Federal Reserve cuts

Prospective buyers attend an open house in San Francisco.

Photographer: Michaela Vatcheva/Bloomberg
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Even before the Federal Reserve has begun cutting interest rates, the mere anticipation of such moves is already thawing the US housing market.

A series of reports this week showed activity coming back to life: Housing starts surged to a six-month high, sales of previously owned homes picked up from a 13-year low and builder optimism was boosted by increased interest from prospective buyers. Meanwhile, Americans’ home-buying plans rose this month by the most in more than a year.